Personal Tax - Accommodation help!
JaneF
Registered Posts: 14 New contributor 🐸
Hi All,
I was wondering if anyone would be able to answer this question. I think i am just having a a complete block and not sure if i am going about this the right way!
John was provided with not job related accomodation that the employer purchased for £125k. The annual value is £6300 and the employer has bought furniture costing £2000 for the flat. The ORI is 4%. What is the taxable benefit.
Any help would be appreciated!
Jane
I was wondering if anyone would be able to answer this question. I think i am just having a a complete block and not sure if i am going about this the right way!
John was provided with not job related accomodation that the employer purchased for £125k. The annual value is £6300 and the employer has bought furniture costing £2000 for the flat. The ORI is 4%. What is the taxable benefit.
Any help would be appreciated!
Jane
0
Comments
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I'm doing this from memory (stuck in car waiting around) so this won't be brilliant but might help a bit.
Ok. So the property costs more than the basic value of 75k (I think that's the right number) so they will be taxed on the difference between that and the cost, so 50k. The BIK is the annual percentage on the excess (I think). Plus the BIK is the rateable value. Plus the BIK for the furnishings, but I can't remember what that is (20% per annum on cost?).
Basically there are 3 elements to the BIK in this question.0
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