§ Mr. Paul Deanasked the Chancellor of the Exchequer how many cases have been recognised under section 66(4) of the Finance Act 1976; and what are the circumstances required for exemption.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 25th July 1978], gave the following information:
880WNo information is available as to the number of cases which have qualified for exemption under this subsection, which excludes from liability entirely arms-length transactions under which a relative of a higher-paid employee of a firm, who is not himself a higher-paid employee of that firm, gets a cheap loan from the firm. If the employee can show that he himself derived no benefit from the loan being made to his relative he will not be taxable on the benefit from the loan simply because the recipient is a relative of his. The same applies if the relative obtains a loan waiver from the employer in such circumstances.