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Sir is it true that a loan taken from employer( even if over 10000pounds) would be fully deductible from the employment income?? And relief in the form of Qualifying interest payments would also be deductible from the total income
If a beneficial loan is taken from an employer then this INCREASES employment income as it is an assessable benefit.
If the loan is for a qualifying purpose then the qualifying interest payment is an allowable deduction from total income.
This would have the following effect:
If an interest free beneficial loan is also a qualifying loan for purposes of qualifying interest payments then this would be treated as exempt income and excluded from both employment income and from qualifying interest payments as we would simply be adding and deducting the same figure.
If some interest is actually paid by the employee then the assessable benefit is lower but the qualifying loan interest payment deduction would be the combination of the assessable benefit plus the interest paid by the employee ie a total of 2.5%.
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