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Reduction in the ‘official’ rate of interest from 6 April 2014

Borrowing money interest free from your employer or company gives rise to a benefit in kind and personal tax charge.  There are also potentially Corporation Tax consequences too.

The tax payable is based on an ‘official’ rate of interest published by HMRC.

The rate charged on such loans reduces from 6.4.2014 to 3.25% from the current rate of 4%.

 

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