Subject to the exceptions summarised at
EIM26132 a chargeable benefit arises
when an employment-related loan (
EIM26113) which is a taxable cheap loan
is provided to an employee, except one in an excluded employment
A taxable cheap loan is an employment-related loan
It is not necessary for the loan to be advantageous to the recipient for a chargeable benefit to arise. It is sufficient if the cheap or interest-free loan is made by reason of his or her employment (see Williams v Todd (60TC727)).