Interest-free and low interest loans

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Interest-free and low interest loans
  • When does a loan give rise to a benefit?
  • How is the benefit charge calculated
  • Repayment of the loan
  • What happens if the loan is not repaid?
  • Exemptions

The entry in box 15 on the Employment supplementary page  to the Tax Return is the total cash equivalent of:

 £Section of P11D
Payments made on behalf of employeeXB
Interest-free and low interest loansXH
Qualifying relocation expenses payments and benefitsXJ
Services suppliedXK
Other items (including subscriptions and professional fees)X

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