# Personal Tax Past Paper

beckydownes1
Posts:

**8**Registered
Hi

Can anyone help me with task 1.2 question b)

the taxable benefit in kind arising from the accommodation?

House was purchases for £214000

Extended in October 2012 at a cost of £18500

Extended again July 2014 at a cost of £5400

Annual Value is £4700

The answer is £9819 and I've no idea how this is worked out

thanks

Can anyone help me with task 1.2 question b)

the taxable benefit in kind arising from the accommodation?

House was purchases for £214000

Extended in October 2012 at a cost of £18500

Extended again July 2014 at a cost of £5400

Annual Value is £4700

The answer is £9819 and I've no idea how this is worked out

thanks

## Comments

120RegisteredAs the original cost of the property exceeds £75,000 the 'expensive accommodation' charge also applies. This is the official rate of interest multiplied by the cost of the property, plus capital enhancements prior to the year for which the benefit is calculated (assumed to be 2014/15 in this question), less £75,000.

i.e. (£214,000 + £18,500 - £75,000) x 3.25% = £5,119.

Adding both elements of the benefit charge together (£4,700 + £5,119) gives £9,819.

36Registered28RegisteredHoping somebody could help me too. I am stuck on the same question and understand how Kernow has worked it out but I don't understand why my answer sheet from AAT says that the answer is £11,000 for 'the taxable benefit in kind from the accommodation?'

Also, does the further extension cost of £5,400 not get included?

Thanks