283. Low-interest or no-interest loans provided to employees.

A taxable benefit arises where an employee is provided a low-interest or no-interest loan in relation to his or her employment1. The cash equivalent of the benefit is calculated as the difference between the amount of interest paid by the employee and a benchmark amount determined by reference to the published official rate2. The following loans are excluded:

  1.  

    (1)     where the total of all such loans does not exceed £10,0003;

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    (2)     loans made on commercial terms by an employer whose business includes the making of loans, where a substantial proportion of those loans are made to members of the