Taxable benefit on accommodation.

Quinton was provided with a company flat in January 2022. The rateable value of the flat is £1,200. The property cost his employer £125,000, but was valued at £150,000 in January 2022. Quinton paid rent of £500 in each tax year. Required What is the taxable benefit for 2022/23, assuming: (c) His employer purchased the property in 2020? When calculating the taxable benefit for an employee, shouldn't we use the higher value between the annual value/ rateablevalue and the rent paid by the employee? In this specific scenario why is the rent being deducted from the annual value instead. Annual value = 1,200 Less rent paid= (500) 700 Additional amount (£125,000 - £75,000) × 2% =1,000 Taxable benefit =1700 This is the solution given.