The average rates are used for the ‘normal averaging’ method of calculating the cash equivalent of a beneficial loan (based on the average amount of the loan calculated by reference to its maximum opening and closing balances at the beginning and end of the tax year; see HMRC’s Employment Income Manual at EIM26215).
The actual official rate of interest from 6 April 2023 is 2.25%.
The average rates are used for the ‘normal averaging’ method of calculating the cash equivalent of a beneficial loan (based on the average amount of the loan calculated by reference to its maximum opening and closing balances at the beginning and end of the tax year; see HMRC’s Employment Income Manual at EIM26215).
The actual official rate of interest from 6 April 2023 is 2.25%.
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