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UK tax weekly: beneficial loan interest rise, NICs re-rating, HMRC digital and agent services, self-assessment threshold plan, VAT FTT rulings, SDLT refund update, Welsh Budget—13 March 2025

Published on: 13 March 2025

Published by a LexisNexis Tax expert
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In this issue:

  • Employment taxes
  • Individuals
  • National Insurance contributions (NICs)
  • Stamp duty land tax (SDLT)
  • Tax compliance
  • Value added tax (VAT)
  • Wales
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  • Dates for your diary
  • Trackers
  • Useful information

Employment taxes

Parliament makes Regulations to increase the official rate of interest on beneficial loans

On 5 March 2025, Parliament approved the Taxes (Interest Rate) (Amendment) Regulations 2025 (SI 2025/270). The Regulations raise the 'official rate of interest' on beneficial loans (see ITEPA 2003, Pt 7, Ch 3) from 2.25% to 3.75% a year with effect from 6 April 2025. For tax purposes, the cash equivalent of the advantage from such loans—calculated as the gap between interest at the official rate and the amount actually paid—is generally treated as earnings. These changes follow the government's Autumn Budget 2024 announcement that HMRC's late payment interest on unpaid tax liabilities would rise by 1.5 percentage points from 6 April 2025. Accordingly, the amount is taxed as earnings. It applies from 6 April 2025. See: LNB News 07/03/2025 21...

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