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hello sir
Jo is provided with non-job related accommodation by her employer, which the employer purchased 35 years ago at a cost of £72,000. The property has an annual value of £2,600, and had a market value of £245,000 when first made available to Jo 8 years ago. Jo pays £250 per month to her employer to live in the property. What is the assessable benefit for Jo in 2014/15?A £Nil
B £4700
C £4790
D £2,600basic charge – 2600
charge for expensive accomodation
( cost of accomodation-75000)xofficial rate of interest
(245000-75000)x.03=5100
Total 2600+5100=7700
less amount paid by jo – (3000)
total benefit =7700-3000=4700Sir answer is A. Nil that means they have not calculated charge for expensive accomodation, but since the property was accquired more that 6 year before giving it to jo shouldnt they consider market value of the property at the time it was given to jo. It is even mentioned in your course note. so why in the example market value of 245000 not taken to determine charge for expensive accomodation
The expensive accommodation benefit ONLY applies where the COST of the property was over £75,000. If the cost exceeded £75,000 we then have to consider whether the cost or OMV when the employee moved in is to be used in calculating that benefit. If as here, however the cost does not exceed £75,000 then there is no expensive accommodation benefit to be computed.
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