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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Removal or transfer costs: expenses and benefits to which Section 271 ITEPA 2003 applies: bridging loans: loans provided by the employer: procedure

Section 288 ITEPA 2003

  1. Consider whether other qualifying removal expenses and benefits add up to £8,000 or more. If they do, no relief will be due. Assess the benefit of the loan following the normal rules. If they do not, go to step 2.
  2. If the time limit (see EIM03104) has not expired and it is likely that there will be further qualifying removal expenses and benefits, assess the benefit of the loan under the normal rules at EIM26101 onwards. Reconsider the position when the time limit has expired. Otherwise go to step 3.
  3. If the other qualifying removal expenses and benefits total less than £8,000, calculate using the formula:

(A  x 365) / (B x C)


  • A is the difference between the total of all other qualifying expenses and benefits and £8,000
  • B is the maximum amount of the loan outstanding between the date the loan is made and the date when the time limit expires and
  • C is the official rate of interest (see EIM26104) in force at the time when the loan is actually made.

Round up the result to the nearest whole number. The answer is treated as a number of days.

  1. Take the date on which the loan was made and add to it the number of days calculated at step 3.
  2. Work out the charge under Part 3 Chapter 7 ITEPA 2003 on the basis that the loan was made on the day calculated at step 4 rather than on the actual day when it was made (see EIM26101 onwards).

For further guidance see the example at EIM03125.