HMRC internal manual

Employment Income Manual

EIM26212 - The benefits code: beneficial loans: calculation of the cash equivalent: meaning of maximum balance on a day

Section 182 ITEPA 2003The maximum amount of a loan outstanding on a particular day is the largest amount owing at any time during that day.

Thus if the loan outstanding at the start of the day is £5,000 and during the day the employee repays the lender £1,000, the maximum outstanding balance on that day is £5,000.