Part 13Tax avoidance
Chapter 2Transfer of assets abroad
F1Value of certain benefits
742CValue of benefit provided by a payment by way of loan
(1)
The value of the benefit provided to a person (P) by a payment by way of loan to P is, for each tax year in which the loan is outstanding, the amount (if any) by which—
(a)
the amount of interest that would have been payable in that year on the loan if interest had been payable on the loan at the official rate, exceeds
(b)
the amount of interest (if any) actually paid by P in that year on the loan.
(2)
In this section and section 742D the “official rate”, in relation to interest, means the rate applicable from time to time under section 178 of the Finance Act 1989 for the purposes of Chapter 7 of Part 3 of ITEPA 2003.