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is expensive living accommodation determined by cost price or market value? if purchase price is 60000 and market value when transferred to employee is 80000. is this a expensive living accommodation?
It depends is the simple answer.If the property was acquired six years before it was first made available to the employee the purchase price is replaced for tax purposes by market price on date provided to employee.If this is not the case, the appropriate value is the purchase price of the accommodation plus the costs of any improvements made to the accommodation before the start of the tax year in question,minus any capital contribution made by employee.
A is provided with non job related accommodation by her employer, which the employer purchased 35 yrs ago at a cost of 72000. the property has an annual value of 2600 and had a market value of 245000 when first made available to A 8 yrs ago. A pays 250 per month to her employee to live in the property?
so, I think this is expensive living accommodation since it was purchased 35 yrs ago and market value is more than 750000.
but in answer, it was not considered expensive living accomodation
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