INCOME TAX
Despite the introduction of quarterly reviews of HMRC’s official rate of interest, the rate will be held at 3.75% from 6 April 2026.
The official rate of interest (ORI) is used to calculate the income tax charge on the benefit of employment-related loans and certain employment-related living accommodation. Employers and employees should therefore continue to apply the 3.75% rate for these purposes from the start of the 2026/27 tax year.
As announced at Autumn Budget 2024, the ORI is reviewed quarterly to determine whether it should be increased, decreased or maintained. Any changes following a review will take effect from 6 April, 6 July, 6 October and 6 January. The rate of 3.75% was maintained throughout the 2025/26 tax year. HMRC has now confirmed that there is no change to the ORI from 6 April 2026, which will remain at 3.75%.