Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 7Taxable benefits: loans
Benefit of taxable cheap loan treated as earnings
178Exception for loans where interest qualifies for tax relief
A loan is not a taxable cheap loan in relation to a particular tax year if, assuming interest is paid on the loan for that year (whether or not it is in fact paid), the whole of that interest—
a
is eligible for relief under section 353 of ICTA (general provision for relief for payments of interest, excluding MIRAS),
b
would be eligible for relief under that section but for the fact that it is a payment of relevant loan interest to which section 369 of ICTA applies (mortgage interest payable under deduction of tax),
c
is deductible in computing the amount of the profits to be charged under Case I or II of Schedule D in respect of a trade, profession or vocation carried on by the person to whom the loan is made, or
d
is deductible in computing the amount of the profits to be charged under Schedule A in respect of a Schedule A business carried on by that person.