Guidance
Beneficial loan arrangements (480: Appendix 4)
Find out more information on the average official rate of interest for beneficial loan arrangements.
Official rates
1. Table of average official rates.
Use the table below to find the average official rate of interest for years when:
- the loan was outstanding throughout the Income Tax year
- you’re using the normal averaging method of calculation (see chapter 17 paragraph 17.29)
| Year | Average official rate |
|---|---|
| 2002 to 2003 | 5.00% |
| 2003 to 2004 | 5.00% |
| 2004 to 2005 | 5.00% |
| 2005 to 2006 | 5.00% |
| 2006 to 2007 | 5.00% |
| 2007 to 2008 | 6.25% |
| 2008 to 2009 | 6.10% |
| 2009 to 2010 | 4.75% |
| 2010 to 2011 | 4.00% |
| 2011 to 2012 | 4.00% |
| 2012 to 2013 | 4.00% |
| 2013 to 2014 | 4.00% |
| 2014 to 2015 | 3.25% |
| 2015 to 2016 | 3.00% |
| 2016 to 2017 | 3.00% |
| 2017 to 2018 | 2.50% |
| 2018 to 2019 | 2.50% |
For the 2019 to 2020 average official rate, see the rates and allowances: beneficial loan arrangements guidance, after the end of the 2019 to 2020 tax year.
2. Table of actual official rates.
Use the table below in cases not within 1 above.
| From | To | Rate |
|---|---|---|
| 6 March 2009 | 5 January 2002 | 6.25% |
| 6 January 2002 | 5 April 2007 | 5.00% |
| 6 April 2007 | 28 February 2009 | 6.25% |
| 1 March 2009 | 5 April 2010 | 4.75% |
| 6 April 2010 | 5 April 2014 | 4.00% |
| 6 April 2014 | 5 April 2015 | 3.25% |
| 6 April 2015 | 5 April 2017 | 3.00% |
| 6 April 2017 | current | 2.50% |
3. Official rates for foreign currencies.
Loans within Chapter 17 paragraph 17.5 made in Japanese Yen.
| From | To | Rate |
|---|---|---|
| 6 June 1994 | 3.9% |
Loans within paragraph 17.5 made in Swiss Francs.
| From | To | Rate |
|---|---|---|
| 6 June 1994 | 5 July 1994 | 5.7% |
| 6 July 1994 | 5.5% |
Published 30 December 2019
Last updated 30 March 2020 + show all updates
Last updated 30 March 2020 + show all updates
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Updated Beneficial loan arrangements to include the official rates for 2017 to 2018 and 2018 to 2019.
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First published.