loophole

[loop-hohl]

noun

1. a means of escape or evasion; a means or opportunity of evading a rule, law, etc..

   There are a number of loopholes in the tax laws whereby corporations can save money.

2. a small or narrow opening, as in a wall, for looking through, for admitting light and air, or, particularly in a fortification, for the discharge of missiles against an enemy outside.

3. an opening or aperture.

verb (used with object)

loopholed, loopholing 

1. to furnish with loopholes.

loophole

/ ˈluːpˌhəʊl /

noun

1. an ambiguity, omission, etc, as in a law, by which one can avoid a penalty or responsibility

2. a small gap or hole in a wall, esp one in a fortified wall

verb

1. (tr) to provide with loopholes

Word History and Origins

Origin of loophole¹

First recorded in 1585–95; loop ² + hole

Word History and Origins

Origin of loophole¹

C16: from _loop ² + _hole

Example Sentences

The "de minimis" loophole allows overseas retailers to send goods to the UK worth up to £135 without incurring customs duty.

Read more on BBC

In prior California ballot initiatives, Steyer successfully supported efforts to close a corporate tax loophole and to raise tobacco taxes, and fought oil-industry-backed efforts to roll back environmental law.

Read more on Los Angeles Times

Visa has warned that the loophole runs afoul of the company’s rules.

Read more on The Wall Street Journal

Over the summer, the administration closed a loophole that allowed some cheap goods, such as Washburn’s capris, to enter the country tariff-free.

Read more on The Wall Street Journal

But a more significant thing has occurred: Since 1990, Congress hasn’t enacted a single provision to close loopholes in the estate tax.

Read more on Barron's

When To Use

What is a loophole?

A loophole is an absence or something vague in a rule or law that allows a person to avoid punishment, as in I was able to keep an alligator in my apartment thanks to a loophole in the housing rules that said only “no dogs allowed.” Loopholes often result from poor wording or vague language in a rule or law. Generally, we can expect that anything that is not specifically forbidden or illegal must be allowed. However, this expectation sometimes allows people to get around the law by not violating the exact wording of that law.For example, a law may say that no one is allowed to walk on the sidewalk after dark. People take advantage of the loophole in this law by skipping, running, or jogging on the sidewalk when it is dark. Technically, they haven’t done anything forbidden by the law so they could not be punished for it.People who write laws and contracts try to avoid potential loopholes by using very specific language. Parents often have to do the same thing to avoid their children getting around their rules.Example: The companies used a loophole in the tax code to avoid paying taxes by registering themselves as charities.