Financial Resolution No. 3, relating to preferential loans rates, which arises every year, provides for an amendment to section 122 of the Taxes Consolidation Act 1997 to increase the specified rate to be applied to preferential loans provided by an employer to an employee. Where an employee receives such a loan at a rate below the specified rate, the employee is chargeable to tax on the benefit in kind reflected by the difference. The rate in respect of loans other than home loans is to increase from 13% to 15%. The estimated yield from this measure in a full year is approximately €2 million.

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