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HMRC internal manual

Employment Related Securities Manual

Securities acquired for less than market value: old regime: annual charge

Aggregation with other beneficial loans

The notional loan is aggregated with other real beneficial loans for these purposes.

Threshold for annual charge

Where the total of such loans does not exceed £5,000 there is a de minimis exemption under ITEPA03/S180.

Deemed annual benefit of loan treated as earnings

The employee is deemed to be in receipt of income equal to the “official rate of interest” (see EIM26104) on the loan as prescribed by HMRC under Treasury regulation.

See EIM26101 et seq. for full details as to computation of annual benefit.

See example at ERSM71040.