Paragraph 37

(1)

Sub-paragraph (2) applies where—

(a)

P is treated as taking a relevant step by paragraph 1 by reason of a loan made to a relevant person, and

(b)

the loan is an employment-related loan (within the meaning of Chapter 7 of Part 3 of ITEPA 2003).

(2)

The effect of section 554Z2(2)(a) of ITEPA 2003 (value of relevant step to count as employment income: application of Part 7A instead of the benefits code) is that the loan is not be treated as a taxable cheap loan for the purposes of Chapter 7 of Part 3 of that Act for—

(a)

the tax year in which the relevant step is treated as being taken, and

(b)

any subsequent tax year.