Methley Ltd:
– Is a UK resident trading company which is a close company

Chris:
– Is employed by Methley Ltd and owns 10% of its ordinary shares.
– Has been offered the sole use of a company motor car or, alternatively, a loan to enable him to purchase the
same motor car himself.
– Is a higher rate taxpayer

Chris – alternative 2 – loan:
– Methley Ltd would provide Chris with an interest-free loan of £9,600 on 1 October 2016.
– The loan would be written off in three years’ time.

Required
Calculate Chris's Benefit in respect of the loan