Preferential Loans

Tax and Duty Manual Part 05-04-01 has been updated to reflect changes made to the tax treatment of preferential loans as a result of Finance Act 2017.

The Finance Act 2017 amendment ensures that a taxable benefit arises on an employee (or his or her spouse or civil partner) in any year where the employee pays no interest on an employer-provided loan or pays interest at a rate less than the specified rate.

21 March 2018