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- This topic has 3 replies, 3 voices, and was last updated 4 years ago by Tax Tutor.
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- February 8, 2020 at 5:34 pm #561105
Hello,
E is provided with a flat by her employer. The employer purchased the flat in 2016 for £ 85,000. E moved into the flat on 1 Apr 2018 when the market value was £120,000. The employer pays Council Tax of £120 per month. E contributes £50 for use of the flat. The annual value is £50.
What is the taxable benefit?
-The calculation is as follows:
Annual Value(500) + additional charge(250)- employee contribution+Council tax1. Could you explain why council tax has been added?
Thanks
February 10, 2020 at 3:57 pm #561293It is another personal cost – like a gas bill or electricity bill – that has been paid for by the employer – it is therefore an assessable benefit
February 12, 2020 at 2:12 pm #561506sir
i do not understand how we got to this answer
kindly assistFebruary 13, 2020 at 6:07 pm #561727I do not think that the student has correctly copied all the information from the question and answer – so other than my answer to the specific query – ignore it!
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