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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2999
Experience:  FCCA FCMA CGMA ACIS
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I was promised a forgiveable loan of £50k when joining a new

Customer Question

Hi , I was promised a forgiveable loan of £50k when joining a new company. i was only paid £29k as i was told it was taxed. is this correct?
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The loan itself would be outside the scope of UK taxation as would its repayment, assuming that you were not a Director.

However, once the loan becomes forgivable, it becomes part of your emoluments and is taxed at your marginal rate, presumably, but not necessarily, through PAYE.

I am so sorry to have to rain on your parade.

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