EIM26242 – The benefits code: beneficial loans: calculating the cash equivalent: the precise method: time limit for election

Section 183(2) ITEPA 2003

The time limit for making an election for the precise method of calculating the cash equivalent of a beneficial loan (see EIM26230) is as follows:

• the employee has until the end of the period of 12 months beginning with 31 January next following the relevant year to make an election
• the Inspector has the same period to give notice requiring the precise method to be adopted.

For example, for the year 1999/2000, the election must be made, or notice given, by 31 January 2002.

It is expected that employees who wish to make an election for the precise method will do so by calculating the figures in their SA tax returns on that basis.