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Once the provisions of ITEPA 2003, ss 446Q–446W (Pt 7, Ch 3C) are triggered (see E4.507V), an interest-free loan (the 'notional loan') is treated as having been made to the employee by the employer at the time of acquisition¹. The consequences of an employment-related loan are then imported², see E4.640 onwards. Specifically, these are³:

1. Ìý

   •ÌýÌýÌýÌý the treatment of the benefit of a cheap loan as earnings (under ITEPA 2003, s 175)

2. Ìý

   •ÌýÌýÌýÌý the exception for loans where interest qualifies for tax relief (ITEPA 2003, s 178)

3. Ìý

   •ÌýÌýÌýÌý the threshold for the benefit of a loan to be treated as earnings (ITEPA 2003, s 180)

4. Ìý

   •ÌýÌýÌýÌý the normal, averaging method of calculating the benefit (ITEPA 2003, s 182)

5. Ìý

   •ÌýÌýÌýÌý the alternative method of calculation (ITEPA 2003, s 183)

6. Ìý

   •ÌýÌýÌýÌý interest treated as paid (ITEPA 2003, s 184)

7. Ìý

   •ÌýÌýÌýÌý the apportionment of the cash equivalent in the case