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the period of 6 years ending with the year of assessment.¹⁷¹ Regulations have been made for loans in Japanese yen and Swiss francs.¹⁷²

17A.4.4    Loans Written Off

Where the whole or part of an employment- related loan is released or written off, ITEPA section 188, ex TA 1988, section 160(2) imposes a charge on the amount so released or written off.¹⁷³ The release of a loan to a relative comes within this rule unless the employee can show that he derived no benefit from the loan.¹⁷⁴

17A.4.4.1    Exceptions

1. Other provisions: Section 188 does not apply if the amount written off is otherwise chargeable to tax (eg under TA 1988, section 421);¹⁷⁵ however, section 188 will apply if the other provision is chapter 3 part 6 or TA 1988 section 677—because the charge under those rules may be less.



2. Death: no charge arises on a release which takes effect after the death of the employee.¹⁷⁶

17A.4.4.2    Non-Exceptions

Section 188 is quite distinct from sections 175, 160(1) and applies whether or not the loan was chargeable under section 175. The charge will therefore arise even though the loan released carried a full commercial rate of interest or was used for a qualifying purpose. Similarly, the charge will arise even though the loan was released or written off after the employment ceased.¹⁷⁷ Where the employment later terminates or ceases to be within these rules, but the loan

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