Is it that there is a BIK on the difference between the rate charged - 3% and the specified rate 4%?
If you are in the business of granting loans to the public, this is not a benefit in kind if:
the rate you charge to the public is lower than the rate set by the Department of Finance
your employee is charged at the same rate as you charge to the public.
The nuance is the staff product does not have an equivalent available to the public. If it did, and rate was the same, there'd obviously be no BIK.I'm also open to correction but my interpretation of that is AIB shouldn't be using the DoF preferential rate when they provide loans to the public. Maybe there is still some BIK but I don't think AIB should be using the 4% reference rate
I hope you don't mind a quick semi-related question - does AIB still have an upper limit of €190k on the amount allowable to staff at staff rates? They had the same limit since before the euro all the way through the crash and I wonder if they've adjusted the limit since.The current LTV Variable rate for mortgages <50% of 3.1% is looks better value for the likes of me for the moment.
Hi there, as far as I know this limit still applies. I'm not sure many have availed of it over the past ten or so years with interest rates much lower than 3% availableI hope you don't mind a quick semi-related question - does AIB still have an upper limit of €190k on the amount allowable to staff at staff rates? They had the same limit since before the euro all the way through the crash and I wonder if they've adjusted the limit since.
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