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HMRC internal manual

Employment Income Manual

The benefits code: beneficial loans: meaning of by reason of employment: exception where loan made by an individual

Section 174(5)(a) ITEPA 2003The exception explained in

EIM26114 also applies to loans made by a person within the third bullet of EIM26113.

So it will apply where:
* a loan is made by an individual who has a material interest in a close company or in another company or a partnership which controls such a company and * the loan is made to an employee whose employer is that close company or controls it or is controlled by it and * the loan was made in the normal course of the lender’s domestic, family or personal relationships.