On 1 July 2023, Alex was provided by his employer with an interest-free loan of 20,000. This
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On 1 July 2023, Alex was provided by his employer with an interest-free loan of £20,000. This loan qualifies as an employment-related loan and is not exempt from the beneficial loan treatment. He repays £5,000 of the loan on 1 January 2024 and repays another £3,000 on 1 March 2024. Compute the taxable benefit in 2023-24 using:
(a) the normal method
(b) the alternative method.
Assume that the official rate of interest is 2.25% per annum. Perform all calculations to the nearest month and to the nearest pound.
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a The amount outstanding at the end of the tax year is 12000 Therefore the average ...View the full answer
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