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Need some explanation on Scholarships as a taxable benefit.

Forums › ACCA Forums › ACCA TX Taxation Forums › Need some explanation on Scholarships as a taxable benefit.

  • This topic has 1 reply, 2 voices, and was last updated 15 years ago by muzawula.
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  • October 2, 2010 at 9:02 pm #45452
    candy~
    Member
    • Topics: 5
    • Replies: 9
    • ☆

    In the BPP text where they say-:

    3.9 Scholarships
    If scholarships are given to members an employee’s family, the employee is taxable on the cost unless the scholarship fund’s or scheme’s payments by reason of people’s employments are not more than 25% of its total payments.

    what exactly do they mean?

    November 9, 2010 at 10:58 am #68964
    muzawula
    Member
    • Topics: 2
    • Replies: 5
    • ☆

    if the total fees is £60,000- the exempted contribution on scholarship should not exceed £15,000 (60,000 x 25%) otherwise if the whole amount is taxed.

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