§ Mr. Mike Thomasasked the Chancellor of the Exchequer whether financial advantages through the receipt of a mortgage or overdraft or loan facilities at an interest rate below market interest rate as a fringe benefit of employment are treated as income for purposes of taxation; and what are the statutory provisions covering taxation of such benefits.
§ Mr. Robert SheldonFringe benefits are taxable under the provisions of Chapter II of Part VIII of the Income and Corporation Taxes Act 1970 by reference to the expense incurred by the employer 473W in providing the benefit. The provision of loan, mortgages or overdraft facilities at less than market rates of interest which does not involve the employer in any expense is not taxable as a benefit.