Income Tax (Earnings and Pensions) Act 2003

190Exclusion of charge after death of employeeU.K.
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(1)On the employee’s death a taxable cheap loan is to be treated—

(a)for the purposes of this Chapter as ceasing to be outstanding, and

(b)for the purposes of section 182 (normal method of calculating interest at the official rate) as being discharged on the date of death.

(2)Section 188 (loan released or written off: amount treated as earnings) does not apply in relation to a release or writing off which takes effect on or after the death of the employee.