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beneficial interest on DLA

beneficial interest on DLA

 2nd day on the financial year the director borrows £200k from his own company and repys it in full 11 months later before the finacial year end is there a BIK for imputted loan interest or canhe claim nil using the opening loan and closing loan averaging calculation

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15th Aug 2011 16:08

There's a benefit

You don't take the balances before there was a loan and after the loan was repaid, you take the balances after the loan has arisen and immediately before repayment.

So your benefit is (£200k + £200k)/2 x 11/12 x 4% = £7,333, assuming we're talking about 2010/11 and the loan was outstanding 11 complete tax months (6th-5th).

Regards.

Sunshine Onerenidi

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15th Aug 2011 16:29

The average

can only be obtained by taking positive numbers for the periods of the interest free loan

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