05 November 2024
HM Revenue and Customs (HMRC) have indicated that from April 2025 the Official Rates of Interest (ORI), used for beneficial loans and living accommodation calculations, will change on a quarterly basis.
From the Overview of Tax Legislation and Rates (OOTLAR), HMRC stated:
2.9 Setting the official rate of interest for quarter 3 of tax year 2024 to 2025
In-year increases in the official rate of interest (ORI) may take place, where appropriate, from 6 April 2025. The ORI is used to calculate the tax liability on employment related beneficial loans and living accommodation.
The rate will continue to be reviewed on a quarterly basis. Any changes in the rate will occur following a quarterly review, where appropriate.
The previous public commitment, made by the Inland Revenue in January 2000, that the rate will 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.
This measure will enable the official rate of interest to increase in-year where appropriate, ensuring employment-related beneficial loans and living accommodation are correctly valued.
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