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HMRC internal manual

Employment Income Manual

The benefits code: beneficial loans: examples

The links below are to examples of calculations of the cash equivalent of beneficialloans.

### Example ### Situation/circumstances
EIM26311 A steadily reducing cheap loan.
EIM26312 A fluctuating cheap loan.
EIM26313 Circumstances where the Inspector should elect for the alternative precise method of calculating the chargeable benefit.
EIM26314 Cheap loans that require aggregation (or where an election for aggregation (see EIM26180) has been made).


The earlier examples cover the simpler types of case. The later ones cover more complexsituations. The heading at the top of each example indicates the points of principle itaims to cover, as shown in the table above.

All the examples show how to calculate the chargeable benefit using both:

  • the normal averaging method (see EIM26210) and
  • the alternative precise method (see EIM26230).