pre-Dec 2024 Mock Q4 Sec A

Hi JIlly,
for the following question there is additional accommodation benefit according to my understanding because the accommodation is provided for more than six years for the employee
so the additional will be (245000-75000)*2.25% =3825
so annual value 2600+3825-employee contribution of 3000=3425

But in the model answer Of ACCA

It is telling that
the original cost is < 75000 so no additional cost.

So which one is correct?

Thanks

Q
Judy is provided with accommodation by her employer, which the employer purchased 35 years ago at a cost of £74,500. The property has an annual value of £2,600, and had a market value of £245,000 when first made available to Judy 8 years ago. Judy pays £250 per month to her employer to live in the property.

The accommodation does not qualify as job?related.

What is the taxable benefit for Judy in the tax year 2023-24?

Answer
£0
Original benefit:

£

Annual value

2,600

No additional benefit:

Purchase cost (£74,500 < £75,000)

0

2,600

Less: employee contribution (250 x 12)=

(3,000)

0

Note:

The employee contribution is greater than the benefit hence there is no benefit.