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There is an exemption from the taxable cheap-loans provisions (see E4.640) available for bridging loans connected with employment moves¹.

Application of the exemption depends on the satisfaction of three conditions.

The first condition is that the loan must be a 'removal benefit'². This means it must be provided in connection with a change in the employee's main residence which results from a change in the circumstances of the employee's employment within the conditions set out in E4.731A. The loan must be raised by the employee or by one or more members of the employee's family or household (the employee's spouse or civil partner, children, children's spouses or civil partners, parents, domestic staff, dependants or guests: see ITEPA 2003, s 721). The employee (or one or more members of the employee's family or household) must dispose of an interest in the former residence and acquire an interest in the new residence. Further, the loan must be raised wholly or partly because there is a gap between