SCHEDULES

SCHEDULE 7

PART I MEANING OF “OBTAINED BY REASON OF EMPLOYMENT”

1

(1)

M1Subject to sub-paragraph (5) below, the benefit of a loan is obtained by reason of a person’s employment if, in relation to that person, it is of a class described in sub-paragraphs (2), (3) or (4) below.

(2)

A loan made by his employer.

(3)

M2A loan made by a company—

(a)

over which his employer had control;

(b)

by which his employer (being a company) was controlled; or

(c)

which was controlled by a person by whom his employer (being a company) was controlled.

(4)

M3A loan made in any case where—

(a)

his employer was, or had control over, or was controlled by, a close company; and

(b)

the loan was made by a person having a material interest in that close company or, that company being controlled by another company, in that other company.

(5)

F1M4Sub-paragraphs (2) and (4) above do not apply to a loan made by F2. . . an individual F3. . . in the normal course of his domestic, family or personal relationships.