{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-188",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-188.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/188",
  "kind": "section",
  "number": "188",
  "heading": "Loan released or written off: amount treated as earnings",
  "text": "(1) If—\n(a) the whole or part of an employment-related loan is released or written off in a tax year, and\n(b) at the time when it is released or written off the employee holds the employment in relation to which the loan is an employment-related loan (“employment E”),\nthe amount released or written off is to be treated as earnings from the employment for that year.\n(2) But if the employment has terminated or become lower-paid employment as a minister of religion and there was a time when—\n(a) the whole or part of the loan was outstanding,\n(b) the employee held the employment, and\n(c) it was not lower-paid employment as a minister of religion,\nsubsection (1) applies as if the employment had not terminated or become lower-paid employment as a minister of religion .\n(3) Where subsection (2) applies, any loan which replaces directly or indirectly the employment-related loan is to be treated as an employment-related loan in relation to employment E if—\n(a) it would, if employment E had not terminated or become lower-paid employment as a minister of religion, have been an employment-related loan in relation to employment E, and\n(b) it is not an employment-related loan in relation to other employment.\n(4) This section is subject to section 189 (exception where double charge).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 188(2) substituted (with effect in accordance with s. 13(4) of the amending Act) by Finance Act 2015 (c. 11), Sch. 1 para. 12(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 188(3)(a) substituted (with effect in accordance with s. 13(4) of the amending Act) by Finance Act 2015 (c. 11), Sch. 1 para. 12(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/188",
    "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."
}