As stated in E4.640, a loan is excepted from charge if it is made by an individual in the normal course of their domestic, family or personal relationships, or if it is made to a relative of the employee from which the employee derives no benefit1.
Loans at fixed rate of interest
Where both the period of a loan and the rate of interest payable are fixed when the loan is made and cannot subsequently be varied, and the fixed rate is not less than the official rate which applied for the tax year in which the loan was made, the loan does not come within these provisions solely because the official rate subsequently moves above the fixed rate2.
Advances for necessary expenses
Sums advanced by an employer on account of expenses which are either necessarily incurred by the employee in the performance of the duties of their employment or are incidental overnight expenses are not taxable cheap loans provided that3:
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