Beneficial loan tax?

Jibjab_2

My husband and i are considering a staff mortgage through his work. I have worked out the tax using a formula I found on this forum and to be honest it doesnt seem worth it.
If someone could check my workings that'd be great!
150k loan taxed at 40% would cost 175pcm in tax (staff rate is 0.5%)

What I wondered is if I can split the benefit of the loan between us or entirely to myself for tax purposes as I do not work. Or whether its only considered a benefit in kind for my husband even though the mortgage would be in both our names.

Many thanks!

TrickyDicky101

What's the rate applicable to the staff mortgage? As I understand it, HMRC use a reference rate (which is significantly more expensive than can commonly be sourced out in the market) to determine the tax due which can make these staff loans very uneconomic.

Jibjab_2

sorry forgot that bit, staff rate is 0.5%

Thrugelmir

HMRC beneficial loan rate is currently 4% (2011/12 tax year).

So notional interest on £150k @ 4% in year one (25 year mortgage term) =£5,935

Actual interest @ .5% = £737

So taxable benefit = £5935 - £737 = £5,198

At 40% = £2,079 tax payable.

Jibjab_2

Ok so my tax calculation is fine. I just need to know if i can claim any of the loan is a benefit to me to reduce the tax we pay on it or if it only counts as a benefit to my husband in terms of tax.
Thanks!

TrickyDicky101

I suspect that since it is a benefit only available by virtue of his employment then it will wholly be accessible against him (you aren't an employee of the company, so it isn't a benefit to you).

Thrugelmir

Jibjab wrote: »

Ok so my tax calculation is fine. I just need to know if i can claim any of the loan is a benefit to me to reduce the tax we pay on it or if it only counts as a benefit to my husband in terms of tax.
Thanks!

The benefit is your husbands, as its his employment which obtains the beneficial interest rate.