SCHEDULES

SCHEDULE 11Employment income provided through third parties: loans etc outstanding on 5 April 2019

PART 1Application of Part 7A of ITEPA 2003

Meaning of “outstanding”: quasi-loans in currencies other than sterling

14

1

Paragraphs 15 to 18 apply where P makes a quasi-loan to a relevant person by reason of acquiring a right to a payment in a particular currency (the “quasi-loan currency”).

2

For the purposes of paragraphs 15 to 18, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.

15

1

This paragraph applies in relation to the quasi-loan if the quasi-loan currency is a currency other than sterling.

2

But this paragraph does not apply if paragraph 18 applies in relation to the quasi-loan.

3

The amount of the quasi-loan that is outstanding, at the time P is treated as taking the relevant step F1within paragraph 1, is to be calculated in sterling as follows—

  • Step 1 Calculate, in the quasi-loan currency, the amount that is outstanding at that time.

  • Step 2 Take the value in sterling, at that time, of that amount.

4

See paragraph 16 for provision about repayments made in a currency other than the quasi-loan currency.