On 1 June 2021, Stephen was provided by his employer with an interest-free loan of 20,000. He

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On 1 June 2021, Stephen was provided by his employer with an interest-free loan of £20,000. He repays £5,000 of this loan on 1 January 2022 and repays another £3,000 on 1 March 2022. Compute the taxable benefit in 2021-22 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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Taxation Finance Act 2021

ISBN: 9781292406725

27th Edition

Authors: Alan Melville

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Question Posted: Jan 31, 2024 02:01 AM

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On 1 June 2021, Stephen was provided by his employer with an interest-free loan of 20,000. He

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In the UK if an employer loans an employee more than 10000 at any point during a tax year the loan i...View the full answer

Taxation Finance Act 2021

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