EIM26106 – The benefits code: beneficial loans: official rates for certain foreign currencies
Section 181(2) ITEPA 2003
| Currency | Period from | Period to | Official Rate |
| Japanese Yen | 6 June 1994 | 3.9% | |
| Swiss franc | 6 June 1994 | 5 July 1994 | 5.7% |
| 6 July 1994 | 5.5% |
There has been no change in either rate since 1994.
These rates apply to loans made
- in the currency of a country or territory outside the UK, and
- to an employee
- who normally lives in that country or territory, and
- who has lived in that country or territory at some time in the tax year or in the previous five years.
The intention of these rules is to give relief for employees
working temporarily in the UK, where interest rates in the overseas
country are lower than interest rates in the UK. The relief does
not apply to employees who come to the UK and live here
permanently.
The expressions “normally lives” and
“lived” have their natural commonsense meaning. An
employee who came to work in the UK for four years and who returned
home after the four years can be said to “normally
live” in the home country. It is not necessary to maintain a
residence in the overseas country during the period of employment
in the UK. The terms “lives” and “has
lived” connote a degree of continuance if not permanence. A
holiday in the home country for an employee working in the UK would
not in itself be sufficient to establish that the employee had
“lived” in the overseas country within the meaning of
these rules. “Living” implies more than returning for a
short holiday.
