Ahead of the new tax year it has just been announced that, from 6 April 2015, the official rate of interest will fall from 3.25% to 3%.
HMRC uses this rate for a number of situations including loans made on beneficial terms by trustees of offshore trusts to UK resident beneficiaries. HMRC commonly uses the official rate to determine whether the loan is commercial and to calculate the value of the benefit by reference to undistributed income or gains within the trust.
Contact our Wealth Planning specialist, Robert Drysdale, for more information.
