Section 178 ITEPA 2003

As outlined in EIM26135, where the interest on a loan would have fully qualified for tax relief if the employee had actually paid the interest in question, that loan will not be treated as a taxable cheap loan under S175(1). Examples of this would include:-

interest which would be eligible for relief under section 353 ICTA;

interest which would be eligible for relief under section 383 ITA 2007;

interest which would be deductible in computing the borrower's profit's from a UK trade, profession or vocation carried on by the borrower, or

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