UK | Official Rate of Interest Increase Effective 6 April 2025
The Official Rate of Interest (ORI) is set by a Treasury Order. Following the Chancellor’s Autumn Budget on 30 October 2024, the government announced that the commitment not to increase the ORI during the tax year will end. The ORI will now be reviewed quarterly, instead of annually, to ensure employees are not overtaxed if interest rates fall significantly.
HMRC uses the ORI to calculate the taxable value of:
- Employment-related beneficial loans
- Some employer-provided living accommodation
On 6 March 2025, the Treasury published Statutory Instrument 2025 No. 270, known as the Taxes (Interest Rate) (Amendment) Regulations 2025, which will take effect on 6 April 2025. The ORI will increase from 2.25% to 3.75%.
For further details, the Statutory Instrument can be viewed , and more information on beneficial loans is available on the HMRC Gov.uk website:
- Employment Income Manual:
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