{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-174",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-174.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "section/174",
  "kind": "section",
  "number": "174",
  "heading": "Employment-related loans",
  "text": "(1) For the purposes of this Chapter an employment-related loan is a loan—\n(a) made to an employee or a relative of an employee, and\n(b) of a class described in subsection (2).\n(2) For the purposes of this Chapter the classes of employment-related loan are—\nA\nA loan made by the employee’s employer.\nB\nA loan made by a company or partnership over which the employee’s employer had control.\nC\nA loan made by a company or partnership by which the employer (being a company or partnership) was controlled.\nD\nA loan made by a company or partnership which was controlled by a person by whom the employer (being a company or partnership) was controlled.\nE\nA loan made by a person having a material interest in—\n(a) a close company which was the employer, had control over the employer or was controlled by the employer, or\n(b) a company or partnership controlling that close company.\n(3) In this section—\n“employee” includes a prospective employee, and\n“employer” includes a prospective employer.\n(4) References in this section to a loan being made by a person extend to a person who—\n(a) assumes the rights and liabilities of the person who originally made the loan, or\n(b) arranges, guarantees or in any way facilitates the continuation of a loan already in existence.\n(5) A loan is not an employment-related loan if—\n(a) it is made by an individual in the normal course of the individual’s domestic, family or personal relationships, or\n(b) it is made to a relative of the employee and the employee derives no benefit from it.\n(6) For the purposes of this section a person (“X”) is a relative of another (“Y”) if X is—\n(a) Y’s spouse or civil partner ,\n(b) a parent, child or remoter relation in the direct line either of Y or of Y’s spouse or civil partner ,\n(c) a brother or sister of Y or of Y’s spouse or civil partner , or\n(d) the spouse or civil partner of a person falling within paragraph (b) or (c).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 174(6) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 141"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/174",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}