SE03123 - Removal or transfer costs: eligible expenses and benefits - bridging loans - loans provided by the employer - background

Section 191B and Schedule 11A ICTA 1988

Where

• the employer makes a cheap or interest-free loan ( SE26106) to the employee or to a member of the employee's family or household, and
• that person disposes of an interest in the old home and acquires an interest in the new home
• the reason, or one of the reasons, why that person takes out the loan is to bridge the gap between the date when the interest in the new property is required and the date when the sale proceeds of the old property are available.

the normal charge under Section 160 ICTA may be eligible for exemption or reduction if the other relocation expenses and benefits qualifying for exemption do not exceed the £8,000 limit.

For the procedure to follow (see SE03124).