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HMRC internal manual

Employment Income Manual

Removal or transfer costs: expenses and benefits to which Section 271 ITEPA applies: bridging loans: loans provided by the employer: background

Section 288 ITEPA 2003


  • the employer makes a cheap or interest-free loan (see EIM26100) 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 and
  • 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 acquired and the date when the sale proceeds of the old property are available.

the normal charge under Part 3 Chapter 7 ITEPA 2003 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 EIM03124.