EIM26300 - The benefits code: beneficial loans: examples

The links below are to examples of calculations of the cash equivalent of beneficial loans.

Example

Situation/circumstances

EIM26311A steadily reducing cheap loan.
EIM26312A fluctuating cheap loan.
EIM26313Circumstances where the Inspector should elect for the alternative precise method of calculating the chargeable benefit.
EIM26314Cheap loans that require aggregation (or where an election for aggregation (see EIM26180) has been made).


Note

The earlier examples cover the simpler types of case. The later ones cover more complex situations. The heading at the top of each example indicates the points of principle it aims to cover, as shown in the table above.

All the examples show how to calculate the chargeable benefit using both:

  • the normal averaging method (see EIM26210) and
  • the alternative precise method (see EIM26230).