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UK share incentives: HMRC retains 2.25% beneficial loan rate; St James’s Place CEO bonus cut to nil; HMRC Manuals updates; salaried LLP TAAR after BlueCrest

Published on: 11 April 2024

Published by a LexisNexis Share Incentives expert
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In this issue:

  • Tax treatment
  • Corporate governance
  • HMRC Manuals tracker
  • Useful information
  • Weekly highlights from other practice areas

Tax treatment

HMRC confirms that its official rate of interest will remain at 2.25%

HMRC has stated that its official interest rate for beneficial loan arrangements will stay at 2.25% from 6 April 2024, notwithstanding the Bank of England’s base rate of 5.25%. This rate applies when assessing the tax position of employment-related beneficial loans, and for notional loans under Chapter 3C of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 where employment-related securities are obtained for less than market value. The 2.25% figure has applied since 6 April 2023 (previously 2.00%). For a comprehensive schedule of relevant tax and other rates, see Practice Note: Tax and other rates which are relevant to share incentives. For more on the beneficial loan charge, see Practice Note: Tax issues on the provision of loans to employees or directors. For the notional loan charge, see Practice Note: Securities acquired for less than market value. See Beneficial loan arrangements—HMRC official rates...

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