Hi I currently own my own house. I work up in London and my company are looking to rent a flat for my with a colleague who also lives miles away. As such we will use it Monday to Thursday. can you tell me we will both be taxed on this? thanks
Province/Country relating to question: UK
It depends on the value of the flat - if it is in excess os £75,000 then yes you and your friend will be taxed on this as a benefit in kind. However, if you were to pay a contribution to your company this would reduce the taxable benefit.
CTA, ATT - over 10 years experience in UK tax - CGT, IHT & personal tax
Hi yes the flat is £ 395.00 per week in rent. So for the year this would cost £ 20,540.00 in rent in which the company would pay.So between us do we pay 40% of the £ 20,540.00 each or half?
Sorry - the benefit is calculated on either the cost of the flat or the market value of the flat (depending on how it has been used by your employer) less £75000 plus an annual rateable charge. Both of these should be less than £20,540. And yes, the total benefit would be split between you.