HMRC internal manual

Employment Income Manual

EIM26520 - The benefits code: beneficial loans: interaction between employment income and other tax charges: loans made by superannuation funds

Make a report to (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  in the following situations.

  • Where you find that a director or an employee, who for 2015/16 and earlier is not in an excluded employment (see EIM20007) and who is a member of an approved superannuation fund:

    • obtains an interest-free or cheap loan from that fund and
    • it is claimed that the loan is made otherwise than on the security (whether expressed or implied) of the individual’s prospective benefits from the superannuation fund, namely a loan that is viewed as an ordinary investment.
  • If you get information that suggests that:

    • a small, self-administered pension scheme has been, or is being, set up for the express purpose of making cheap or interest-free loans to a few influential members and
    • the employer has made a special contribution in the early days of the pension scheme to achieve this end.