Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 7

Taxable benefits: loans

Calculation of amount of interest at official rate

The official rate of interest
181
1
“The official rate of interest” for the purposes of this Chapter means the rate applicable under section 178 of FA 1989 (general power of Treasury to specify rates of interest).
2
Regulations under that section may make different provision in relation to a loan if—
a
it was made in the currency of a country or territory outside the United Kingdom, and
b
the employee normally lives in that country or territory, and has actually lived there at some time in the period of 6 years ending with the tax year in question.
3
Subsection (2) does not affect the general power under section 178(3) of FA 1989 to make different provision for different purposes.
Pt. 3 Ch. 7 extended (with modifications) (with effect in accordance with s. 97(3) of the amending Act) by Finance Act 2006 (c. 25), s. 97(1)(2)