BIK on loans - Revenue Rate

TigerPhil

Anyone know the rate of interest the Revenue expect to be charged on a loan to an individual? Can't find it on the Revenue site.

FAEer

Hi TigerPhil:)

As of 1 Januray 2009
Loan for home/ principal residence are 5.5%

All other loans are 15%

Thats just from memory - perhaps someone else will back it up?

TigerPhil

FAEer wrote: »

Hi TigerPhil:)

As of 1 Januray 2009
Loan for home/ principal residence are 5.5%

All other loans are 15%

Thats just from memory - perhaps someone else will back it up?

Thanks, and what about loans to non-employee shareholders?

FAEer

Hi TigerPhil

I checked the revenue website & they're saying 13% but I'm pretty sure Finance Act 09 - its now 15%. That website contains plenty of errors - easiest way if no one here can confirm (?) is to ring up your local office & ask - make sure you get the name of the person!

With regards to non-employees then its not a BIK under Schedule E - your into distribution territory and depending on the company - into close company provisions - beware. I can't give you a quick answer on the implications - sorry. perhaps someone else can jump in!

TigerPhil

FAEer wrote: »

Hi TigerPhil

I checked the revenue website & they're saying 13% but I'm pretty sure Finance Act 09 - its now 15%. That website contains plenty of errors - easiest way if no one here can confirm (?) is to ring up your local office & ask - make sure you get the name of the person!

With regards to non-employees then its not a BIK under Schedule E - your into distribution territory and depending on the company - into close company provisions - beware. I can't give you a quick answer on the implications - sorry. perhaps someone else can jump in!

Cheers... can the resident expert jump in please?

dbran

Should be returned on their personal tax return I suspect.