Directors Loans
3 posts • Page 1 of 1
by Lambs on Thu Jan 12, 2006 1:26 pm
T, if your query is related to that posted by "Tomkinson" (see 2 queries up) then I suggest that you refer to that, as they appear to be remarkably similar.
Your query is a little short on detail, but reading into it, which is not without risk, the short answer is "No."
He may be charged Income Tax on the Benefit in Kind arising on the notional interest saved between an interest-free loan and what HM Revenue & Customs approximates to a general commercial rate, but that rate is a fraction of 16%.
This doesn't mean that there are no provisions, say in the company's legal constitution, or in his own contract of employment, that could levy such a charge. I think that this would be quite unusual, however.
Regards,
Lambs
Your query is a little short on detail, but reading into it, which is not without risk, the short answer is "No."
He may be charged Income Tax on the Benefit in Kind arising on the notional interest saved between an interest-free loan and what HM Revenue & Customs approximates to a general commercial rate, but that rate is a fraction of 16%.
This doesn't mean that there are no provisions, say in the company's legal constitution, or in his own contract of employment, that could levy such a charge. I think that this would be quite unusual, however.
Regards,
Lambs
- Lambs
- Posts: 846
- Joined: Wed Aug 06, 2008 3:15 pm
3 posts • Page 1 of 1
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