Personal Tax Mock 2014

DSAJ

I cannot seem to work out the answer for this question myself. It's in section 1.2 and the relevant information is:

On 1 November 2011, Roweena had been given a £15,000 loan on which she paid her employer 1% interest. On 1 July 2014, Roweena repaid £3,000 of the loan, but she had made no other repayments.

I have to say what the taxable benefit in kind relating to the loan is. The answer is £304 according the the answer sheet but I cannot seem to work out how to get to that. Any help would be much appreciated.

mdandre

It is considered a taxable benefit receiving a loan for more the 10k at a rate less then 3.25%.
The assessable benefit is calculated on the difference between the rate on the money borrowed and the official rate(3.25%) multiplied but the amount borrowed during the year.
The amount borrowed during the year is (15000-12000)/2=13500£, ie an average of the amount actually borrowed during the year, and the difference is 3.25-1.00=2.25; this makes 13500*2.25%=303.75.

DSAJ

Thank you verymuch! That question was giving me a headache!