Asked by: Adam Thompson (Labour - Erewash)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the viability of an amendment to section 180(1)(a) of the Income Tax (Earnings and Pensions) Act 2003, to increase the maximum value of employer loans in the context of levels of inflation since the last increase.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Within the current benefit in kind tax rules employers are able to provide their employees with a loan, which can be provided tax free, as long as the total value of the loan is below £10,000. This type of loan can be used to make purchases such as train season tickets, most of which are under £10,000, and the employee will then reimburse their employer out of their net salary.
The Government keeps all aspects of the tax system under review. Any decisions on future changes will be taken in the context of the wider public finances.