EIM26112 – The benefits code: beneficial loans: meaning of relative

Section 174(6) ITEPA 2003

Relative is given a special meaning for the purpose of the charge on beneficial loans or their release or writing off.

Persons defined as relatives include:

• the employee's spouse
• the parents, children and brothers and sisters of both spouses
• remoter ancestors or descendants of both spouses, for example, grandparents and grandchildren
• the spouses of all the persons mentioned above.

This definition is much wider than that used for:

• other benefits of employees within the benefits code (see EIM20504)
• benefits obtained by the use of vouchers or credit-tokens (see EIM16080)
• sick pay (see EIM06410).