Paragraph 1

United Kingdom

(1)

M1Subject to sub-paragraph (5) below, the benefit of a loan is obtained by reason of a person’s employment if, in relation to that person, it is of a class described in sub-paragraphs (2), (3) or (4) below.

(2)

A loan made by his employer.

(3)

M2A loan made by a company—

(a)

over which his employer had control;

(b)

by which his employer (being a company) was controlled; or

(c)

which was controlled by a person by whom his employer (being a company) was controlled.

(4)

M3A loan made in any case where—

(a)

his employer was, or had control over, or was controlled by, a close company; and

(b)

the loan was made by a person having a material interest in that close company or, that company being controlled by another company, in that other company.

(5)

F1 M4Sub-paragraphs (2) and (4) above do not apply to a loan made by F2. . . an individual F3. . . in the normal course of his domestic, family or personal relationships.

Annotations

Textual amendments

F1: Words in Sch. 7 para. 1(5) substituted (with effect in accordance with s. 88(6) of the amending Act) by Finance Act 1994 (c. 9), s. 88(4)(a)
F2: Words in Sch. 7 para. 1(5) repealed (with effect in accordance with s. 88(5)(6) of the amending Act) by Finance Act 1994 (c. 9), s. 88(4)(a), Sch. 26 Pt. 5(5), Note
F3: Words in Sch. 7 para. 1(5) repealed (with effect in accordance with s. 134(2) of the repealing Act) by Finance Act 1996 (c. 8), Sch. 20 para. 41, Sch. 41 Pt. 5(10), Note

Marginal citations

M1: Source—1976 Sch.8 1(1)
M2: Source—1976 Sch.8 2
M3: Source—1976 Sch.8 3
M4: Source—1976 Sch.8 1(2)

Notes on Schedule 7

Textual amendments

F1: Schs. 6, 6A, 7, 7A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 paras. 110, 111, Sch 8 Pt. 1 (with Sch. 7)