Personal Tax Question HELP!!

B1982

Hi, I will be sitting my personal tax exam on Wednesday and i'm stuck on the following question (c)... It's from the CBA Finance act 2010 exam on the aat website.

An employee has a salary of £28,500. He was given the use of a house in December 2099, that cost the employer £198,000. The annual value of the house is £5,700. The house contained furniture that cost the employer £3,000. The employer also paid for all ancillery services, which cost £3,200 for 2010/11

a. The assesable benefit in kind for the use of the house for 2010/11 is ... £10,620 (Got that right)

b. The assesable benefit in kind for the use of the furniture and the ancillary services for 2010 is... £3,800 (Got that right aswell.

Now here is where i get stuck...
c. If the house was treated as a job-related accomodation, the assessable benefit in kind would be?????
(On the aat answer sheet it states £2,850, but i can't work out how to get to that figure)

Any help on how to answer will be greatly appreciated. Thanks!

Nia

as its job related accommodation, ancillary benefits are restricted to 10% of other employment income ie 10% of £28500. HTH

B1982

Thanks very much Nia!! )

Priti

Hi

Im struggling with this question aswel, i cant seem to get the answer for question A and B,

Would you please be able to explain how you came to those answers?

Any help would be appreciated

Thanks
Priti

salih

how do you get 3800 again?

Diddy Mau

Hi Salih
been a while since I done this but:
The house contained furniture that cost the employer £3,000. The employer also paid for all ancillery services, which cost £3,200 for 2010/11

3000x20%=600
3,200+600=3,800

hope this helps