Jo is provided with accommodation by her employer, which the employer purchased 35 years 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 Jo 8 years ago.Jo pays £250 per month to her employer to live in the property
The accomodation does not qualify as job related
what is the assessable benefit for Jo in the tax year 2015/16
why does it not include the additional benefit of expensive accomadation
he didnt use the market value of house and instead uses the cost
and his only benefit is zero £250*12-£2600
Ask the Tutor ACCA TX-UK
question on property income
No additional expensive accommodation benefit as the property cost less than £75,000
but it is more than 6 years since it was first made available so it must use the market value and not cost of property?
so it is an expensive house?
No - if the cost is less than £75,000 then it does not matter how long the company has owned it nor what was its market value when the employee moved in - the 6 year rule is irrelevant in these circumstances
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