SolvedEIM26104 | The benefits code: beneficial loans: amount of the official rate
From HM Revenue & Customs · Employment Income Manual
Section 181(1) ITEPA 2003
The official rate is varied from time to time under Treasury regulations.
From 6 January 2002, the table below gives details of the rates applicable to all loans in sterling and loans in foreign currencies other than those specified in EIM26106.
| From | To | Official rate |
|---|---|---|
| 6 April 2025 | - | 3.75% |
| 6 April 2023 | 5 April 2025 | 2.25% |
| 6 April 2021 | 5 April 2023 | 2.00% |
| 6 April 2020 | 5 April 2021 | 2.25% |
| 6 April 2017 | 5 April 2020 | 2.50% |
| 6 April 2015 | 5 April 2017 | 3.00% |
| 6 April 2014 | 5 April 2015 | 3.25% |
| 6 April 2010 | 5 April 2014 | 4.00% |
| 1 March 2009 | 5 April 2010 | 4.75% |
| 6 April 2007 | 28 February 2009 | 6.25% |
| 6 January 2002 | 5 April 2007 | 5.00% |
In January 2000, the Inland Revenue announced that the general approach would be to set the official rate in advance for the whole of the following tax year to lower the regulatory burden on employers. This policy was reviewed if during a tax year interest rates fell significantly, to ensure that employees were not overtaxed on this benefit.
For example, in the autumn of 2001 there were successive reductions in interest rates and, rather than waiting until 6 April 2002, from 6 January 2002 the official rate was reduced to 5.00%. The average official rate for the tax year 2001 to 2002 was 5.94%.
An announcement was made at Autumn Budget 2024 that the previous public commitment, made in January 2000, that the rate would not increase in-year will no longer be applicable. As of 6 April 2025, the official rate of interest may increase, decrease, or be maintained throughout the year.
See EIM26105 for certain foreign currency loans.