In Elizabeth Amri v HMRC (TC03451 – 31 March 2014) the FTT held that a loan granted to an employee on commercial terms available to the general public was not an ‘employment-related loan’.
Mrs Amri was an employee of HBOS when she obtained two loans from Halifax a division of HBOS. She received a letter from Halifax notifying her that her ‘new mortgage account’ was open. The letter referred to two loans. The first loan for £35 000 was on preferential terms for employees of HBOS; whereas the second loan for £105 000 was on normal commercial terms available to the general public.
HMRC contended that Mrs Amri had been granted a single loan by her employer and so the total amount of £140 000 was taxable as a benefit in kind. HMRC relied in particular on the letter sent to Mrs Amri ...
