The official rate of interest on Beneficial Loans changed on 1st March 2009 to 4.75% ( previously 6.25%)

The Average Rate for 2008-09 is 6.10%

When an employee receives a cheap or interest free loan from their employer, this is the rate of interest used to calculate the value of the benefit provided.

The loan interest is then detailed on the form P11D at the end of the tax year, along with any other benefits such as Car and Fuel.