At a Preferential Rate?

They often reward them for being loyal by offering them a lower interest rate than they would normally charge. This reduced/lower rate of interest is called a 'preferential rate'. Normally at most, a 'preferential interest rate' on a loan is a couple of percentage points lower than a bank's 'standard interest rate'.

What is taxed at preferential rate?

This preferential rate is considered to be a tax expenditure, and is one of the most expensive in the tax code, with the highest earners paying about half the taxes on capital income as earned income. ... If the item is held for less than a year, the gain is taxed at ordinary rates (up to 39.6 percent).

How do you use preferential treatment?

Something that's preferential gives one person or group a big advantage over others. ... Giving preferential treatment or having a preferential attitude shows that you are partial to one person or group of people. And if you act in a preferential way, it gives the person you prefer an advantage over everyone else.