Beneficial Loan Arrangements

Bill Packer and Elaine Baker
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Bill Packer: Touche Ross & Co.
Elaine Baker: Touche Ross & Co.

Chapter 8 in A Tax Guide to Pay and Perks, 1984, pp 69-73 from Palgrave Macmillan

Abstract: Abstract Specific legislation was introduced, with effect from 6 April 1978, to tax the benefit arising if loans are provided by an employer to an employee at a nil or low rate of interest. This applies to directors or higher-paid employees only and employees earning less than £8500 can take advantage of a beneficial loan arrangement without any tax liability arising, provided certain simple rules are followed. There must be no contractual entitlement to the provision of a loan; once granted it must not be transferable or assignable and it should not be ‘exchangeable’ for increased emoluments at the employee’s option.

Keywords: Official Rate; Fixed Term; Specific Legislation; Credit Facility; Lineal Descendant (search for similar items in EconPapers)
Date: 1984
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DOI: 10.1007/978-1-349-17585-7_8

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