Benefit in kind on preferential loans – Budget 2013

Dec 13

There will be an increase from 12.5% to 13.5% in the specified interest rate to be used in calculating the taxable benefit arising on preferential loans.

Where the preferential loan is a home loan, the specified rate will be decreased from 5% to 4%.

Its important to note in this time of low interest rates that a loan is not a preferential loan if the rate of interest is not less than the interest rate charged on similar loans to other individuals (Individuals who are not employee’s or their spouses)

 

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