Adam has the following employment-related loans from his employer: (a) A 96,000 loan at interest of 1%

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Adam has the following employment-related loans from his employer:

(a) A £96,000 loan at interest of 1% p.a. to enable Adam to buy his own home.

(b) An interest-free season ticket loan of £10,000.

(c) A £15,000 personal loan at interest of 1.25% p.a.

(d) A £4,000 loan (interest-free) to buy necessary equipment for use in his employment.

The full amount of each loan was outstanding at 6 April 2023 and no repayments were made during 2023-24. Calculate Adam's taxable benefit in 2023-24 (assuming an official rate of interest of 2.25% per annum).

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Taxation Finance Act 2023

ISBN: 9781292461083

29th Edition

Authors: Alan Melville

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Question Posted: May 02, 2024 10:01 AM

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Adam has the following employment-related loans from his employer: (a) A 96,000 loan at interest of 1%

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To calculate Adams taxable benefit for each loan we need to determine the taxable amount based on th...View the full answer

Taxation Finance Act 2023

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