This is a freeview 'At a glance' guide to HMRC's Official Rate of Interest (ORI).  

HMRC's ORI is used to calculate the taxable value of:

The rate is set by Treasury Order and normally fixed in advance for a whole tax year, although it can be varied mid-year where there is a significant change in interest rates.

The ORI reduced from 2.25% to 2% on 6 April 2021.

Actual and average rates for earlier years:




 2022-23 2.00
 2021-22 2.00
 2020-21  2.25
 2017-18 to 2019-20 2.50
 2015-16 to 2016-17 3.00
 2014-15  3.25
 2010-11 to 2013-14  4.00
 2009-10  4.75


Useful guides on this topic

Loans: employment-related
An employer may make a tax-free loan to an employee for a sum of up to £10,000 per year.

Accommodation benefit
When is accommodation a taxable benefit? What are the exemptions? How is the benefit calculated? Can accommodation be claimed as part of business travel?

Directors' loan accounts: Toolkit
This is a freeview 'At a glance' version of HMRC's Directors' loan accounts toolkit for advisers with planning points.

Close company loans toolkit (loans to participators)
This guide takes a detailed look at the Corporation Tax treatment when a Close Company makes a loan to a participator (director-shareholder). It also provides links to our guides for individuals on the making of loans to companies.

Payrolling of benefits
The value of certain taxable benefits in kind can be included in taxable pay when calculating the PAYE deducted from payments of wages and salaries to employees.

External link

Beneficial loan arrangements: HMRC official rates

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