PTAX FA2016 Sample Assessment 1 Task 1.2 PLEASE HELP
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shanekenno
Registered Posts: 1
in Personal Tax
Hi Guys,
I am really struggling to get my head round the answer of this question.
The details are as follows;
Justin was provided with living accommodation by his employer on 17 June 2014 and remained their all tax year
Annual Value: £8200
Employer Purchased on 31.03.2017 : £87000
Market Value of the property 17.06.14 : £225000
Market Value of the property 06.04.2016: £254000
Complete the table below to calculate Justin Total taxable benefit in kind for the accommodation:
Annual Value: 8200
Expensive Accommodation Benefit Charge: ???? answer 4500 but dont know how they get it?
Thanks in advance
Shane
I am really struggling to get my head round the answer of this question.
The details are as follows;
Justin was provided with living accommodation by his employer on 17 June 2014 and remained their all tax year
Annual Value: £8200
Employer Purchased on 31.03.2017 : £87000
Market Value of the property 17.06.14 : £225000
Market Value of the property 06.04.2016: £254000
Complete the table below to calculate Justin Total taxable benefit in kind for the accommodation:
Annual Value: 8200
Expensive Accommodation Benefit Charge: ???? answer 4500 but dont know how they get it?
Thanks in advance
Shane
0
Comments
-
This is slightly unusual!
£4,500 = 3%(225,000 -75,000)
which is the accommodation benefit charge, ASSUMING THAT:
1) the employer purchased the property more than six years before 17/6/14 (ie. NOT on 31/3/17)
2) the official rate of interest for 2016/16 is 3%0
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