EIM26240 – The benefits code: beneficial loans: calculating the cash equivalent: the precise method: election

Section 183(1) ITEPA 2003

Either the employee or the Inspector can elect for the alternative precise method (see EIM26230) of calculating the cash equivalent of a beneficial loan. An election made by the Inspector must be made in writing.

An election covers all beneficial loans that the employee has outstanding at any time in the year of assessment concerned. It is not possible to elect to have some such loans dealt with by the alternative precise method and others by the normal averaging method.

For the time limit for election see EIM26242.

See EIM26245 about consulting an Inspector.