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HMRC internal manual

Employment Income Manual

The benefits code: beneficial loans: exemptions from charge: small non-qualifying loans

Section 180(1)(b) ITEPA 2003


  • the exemption under Section 180(1)(a) (see EIM26140) is not due because the total balance outstanding on all loans exceeds £10,000 at some point in the year (£5,000 for 2013/14 and earlier tax years) but
  • the maximum total balance of non-qualifying loans (see EIM26137) does not exceed £10,000 at any time in the year (£5,000 for 2013/14 and earlier tax years)

the non-qualifying loans are exempt and only the qualifying loans are taken into account for the purposes of Section 175 ITEPA 2003.

See example at EIM26146.

Note the second and third sub-paragraphs of EIM26140 regarding respectively the meaning of the maximum balance outstanding and the treatment of interest accrued.