Section 190 — Income Tax (Earnings and Pensions) Act 2003: Exclusion of charge after death of employee

Exclusion of charge after death of employee 190 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.