The release or writing off of a loan could in certain
circumstances also fall within the wording of Part 6 Chapter 3
ITEPA 2003 which taxes termination payments on retirement etc (see
EIM12805 onwards).
Where this is the case the charge under Section 188(1) ITEPA
2003 on the full amount of the release takes precedence (Section
189(2) ITEPA 2003). This means that an employee in those
circumstances cannot have the benefit of the £30,000 exemption
applying to termination payments (see
EIM13505).
