2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation? a. £

2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation? a. £

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 80P

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