The Taxes (Interest Rate) (Amendment) Regulations, SI 2021/249, reduce the official rate of interest on cheap loans provided to employees by employers from 2.25% to 2% with effect from 6 April 2021.
Where an interest-free or low-interest employment-related loan is made, the taxable benefit is the difference between any interest paid by the employee and the interest which would have been paid at the official rate of interest (where that is greater).
The Taxes (Interest Rate) (Amendment) Regulations, SI 2021/249, reduce the official rate of interest on cheap loans provided to employees by employers from 2.25% to 2% with effect from 6 April 2021.
Where an interest-free or low-interest employment-related loan is made, the taxable benefit is the difference between any interest paid by the employee and the interest which would have been paid at the official rate of interest (where that is greater).
