Chapter 4: Taxable and exempt benefits

Question 4.1-Answer
(a).
Annual value £1,200
Less rent paid (500)
700
Additional amount (£125,000 -75,000) x 2.5% 1,250
Taxable benefit 1,950
(b).
Annual value £1,200
Less rent paid (500)
700
Additional amount (£150,000 -75,000) x 2.5% 1,875
Taxable benefit 2,575
(c). Taxable benefit for job related accommodation is £nil.

Question 4.2-Answer
Annual value £3,780
Additional amount (£99,000 -75,000) x 2.5% 600
Taxable benefit (£4,380 x 4/12) 1,460

Question 4.3-Answer
Car benefit £22,000 x 31% (23% + (115-95)/5 + 4%) = £6,820

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Question 4.4-Answer
£
List price 25,000
Less: capital contribution (maximum £5,000) (5,000)
20,000
£20,000 x 37% x 3/12 1,850
Less contribution to running costs (£100 x 3) (300)
Car benefit 1,550

Question 4.5-Answer
£
Car benefit £15,000 x 25% 3,750
Less contribution towards use of car (270)
Taxable benefit for private use of the car 3,480
Fuel benefit £24,100 x 25% 6,025
Total benefits for private use of car and private fuel 9,505

Question 4.6-Answer
a).
£
List price 31,000
Less: capital contribution (2,500)
28,500
£28,500 x 27% (115-95)5 + 23%) 7,695
b).
Fuel benefit £24,100 x 27% 6,507

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c).
Annual value £4,500
Additional charge (£88,000 -75,000) x 2.5% 325
Taxable benefit 4,825

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