F6 Employment Income

This topic has 3 replies, 2 voices, and was last updated 10 years ago by Tax Tutor.

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February 15, 2016 at 9:30 pm #300625
kamlesh
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Hi Can you explain the solution for this question.

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 £5,125
C £5,222
D £2,600
February 19, 2016 at 8:11 am #301122
Tax Tutor
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Where is your answer and the problem you presumably have with the suggested answer? I suspect from the information above you may have calculated the “expensive” accommodation benefit but you do not do this as the property originally cost less than £75,000!
February 19, 2016 at 11:02 pm #301197
kamlesh
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is it A ? Nill
February 22, 2016 at 2:30 am #301497
Tax Tutor
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Yes it should be nil as the rent paid by the employee will be greater than the annual value of the property and as stated earlier there is no expensive accommodation benefit as the cost was less than £75,000.
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