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john is employed by Zebra plc. he was provided with a computer for private use on 6 Nov,2017. the market value when first provided to an employee was 3600. the computer had a market value when give to john of 2000. Zebra plc gifted the computer to john on
5 Apr 2019 when it had a market value of 1000.Calculate gift benefit.
Now i know incase of gift as its a second hand asset we need to take higher of
M.V at the date of transfer & (Market value less benefit already taxed)now M.V at date of transfer is 1000
but while calculating the other one
my question which value will we take. Original market value =3600 or 2000 when it was first given to john.and in case of benefit already taxed means on the hand of John right…….its not that benefit taxed in total of previous employee’s use + john’s use.
Bpp kit question
another question if the company provide a new asset to an employee for use for first time and later gift it to him only, for calculation of transfer of gift will we treat it as first hand asset or second hand asset.
As you state the question is from the BPP kit, it will have the answer to it in the kit for you to review – is there something in that answer that you do not understand?
John is employed by Zebra plc. He was provided with a computer for private use on 6 November 2019. The market value of the computer when first provided to an employee for private use was £3,600 and the computer had a market value of £2,000 when first provided to John for private use. Zebra plc gave the computer to John on 5 April 2021 when it had a market value of £1,000. What are the total taxable benefits for John in respect of the computer for the tax year 2020/21?
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