UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax
This answer was rated:

My company provides me with living accomodation (under my UK…

My company provides me with...
My company provides me with living accomodation (under my UK secondment as an expat in the UK). I will use this property as a weekends house as I live in Central London and have bought a house there. I have declared my house to HMRC as my principal property as I would like to have this asset registered for full capital gains relief. The question is: a) is this a problem either for me or for my company regarding the living accomodation benefit?
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 45 minutes by:
7/8/2012
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,128
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified

Hi

 

Thanks for your question

 

Whether this creates a problem (and a taxable benefit) is dependent on many factors.

 

The fact you have purchased accommodation suggests this is not a temporary secondment, as you are also living in this purchased property, so you have declared an intention to make your time in the UK more permanent.

 

Another factor will be how far is the work provided accommodation from this purchased property.

You advise that you live in central London, where the property has been purchased, but where do you work from?

 

Please also advise how long this secondment to the UK is for.


Thanks


Sam

Ask Your Own UK Tax Question
Customer reply replied 5 years ago
I have been in the UK for the last 12 years. The secondment keeps getting renewed for periods of 2 to 3 years each time. Yes there is a clear intention to make my time more permanent in the UK as I have purchased this property and have declared it as my principal residence. the accomodation provided by my employer will be in the countryside whereas my house is in central london, where I work as well. So i work from london.

Hi

 

Thanks for your response

 

Then the living accommodation has been liable to tax for some time, as you are not deeemd to be a temporary secondment (as it exceeds more than 24 months) UNLESS the accommodation is a necessity in the line of your duties (such as boarding school, lighthouse keeper etc where you have to be on site to perform your duties)

 

So this position may need reviewing for the last 10 years

 

Thanks


Sam

 

Ask Your Own UK Tax Question
Customer reply replied 5 years ago
Yes I am sure my company has been paying tax on my behalf for the accomodation I have been provided. They suggested (back 5 years ago) on my tax return the following (which was written to HRMC): quote 'living accomodation ha been provided to me by employer under under UK secondment agreement. Understanding arrangements with my company's employee benefit trust, my employer has taken a premium sub-lease of property rented by the trust and made the property available to me under license. My employers' capital expenditure on the lease was less than £75000. The taxable benefit, which is included in the P60 figure, therefore represents the annual value of the property under S105 ITEPA, determined in this case as the historic gross ratable value (GRV). This is in accordance with paragraph 11432 in the Revenue's employment income manual. In view of the difficuly, and cost, in obtaining the actual GRV, the latter has been estimated as 5% of the premium. This is a best estimate which is believed to be significantly in excess of the actual gross rateable value.' unquote.
My property was only bought a few years later and as such I have declared it as my principal residency (back in 2009). So the question still stands: a) will my company be liable for any extra taxes? b) do i have a conflict between this benefit provided and my principal residency for the purposes of tax?

HI

 

Thanks for your response

 

1) No - if you are in fact paying tax on the provision of this accommodation, (as your employer would then be suffering Class 1 A also) but if you have claimed that its provided under the UK secondment agreement, then I fear you have not been charged tax, and it may well be that your employer is also then not suffering Class1A - so you need to speak with them about this. As you could be in breach of this secondment provision due to the time you have remained in the UK

But that aside no further taxation will arise on the employer due to you having bought your own residence.

 

2) No - there is no conflict between you have a main residence (with the purchased property) and the accommodation provided, this has no bearing on the issue at all

 

Thanks

 

Sam

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,128
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified
Sam and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?
Ask Sam Your Own Question
Sam
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,128
14,128 Satisfied Customers
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

Sam is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

14,128 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

871 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
How is domicile decided for tax purposes on foreign income
Hello,How is domicile decided for tax purposes on foreign income in the UK? I would like to know if I am correct about the years I am non-domicile and the years I am domiciled in the UK.I have been re… read more
Sam
Sam
Accountant
14,128 satisfied customers
I am planning to sell a house on which there will be a large
I am planning to sell a house on which there will be a large profit up a million pounds . I therefore want to know how to decrease my capital gains tax . I plan to buy other properties with the money … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
My mother recently passed away. She had an ISA with balance
My mother recently passed away. She had an ISA with balance of around 8,000 pounds. My father was told he can liquidate the ISA and have the money transferred to his current (cheque) account. Neither … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,128 satisfied customers
My common law partner, not spouse or civil partner, is
My common law partner, not spouse or civil partner, is gifting me her share of our jointly owned property. Is there any tax implication?… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,128 satisfied customers
I'm hoping you can hoping you can help with the following. I
Hello good Evening,I'm hoping you can hoping you can help with the following.I run a UK limited company which sells downloadable software via a US distributor, who pays us based on how many downloads … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I have always used the CT600 form to do my accounts for many
I have always used the CT600 form to do my accounts for many years, after creating paper accounts using the same format as my original accountants did.This year I have to use the Micro Entity accounts… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
My sister has been living in the UK for the past few months
Hi,My sister has been living in the UK for the past few months (EU citizen), and she's thinking about spending 10/11 months in australia with a working holiday visa, and then return to the UK.She is c… read more
Sam
Sam
Accountant
14,128 satisfied customers
I would like to transfer some savings from my personal
Hello, I would like to transfer some savings from my personal foreign bank account (through TransferWise) every month. Is there any maximum amount I'm allowed to transfer monthly to my UK bank account… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I'm glad that there's someone working on a sunday, I am a
Hi I'm glad that there's someone working on a sunday … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I have some doubts about tax. Could you help me, please?
Hello, I have some doubts about tax. Could you help me, please? … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I am trying to complete my micro entities annual return on
Hi. I am trying to complete my micro entities annual return on Companies House site. I have all my figures but am confused what information to put in the boxes. Figures are as follows: Total income £3… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,128 satisfied customers
My wife are both leaving to the UAE (Dubai) after many years
My wife are both leaving to the UAE (Dubai) after many years to return to the UK. As I understand it we have 120 days of remaining non-tax resident … read more
Sam
Sam
Accountant
14,128 satisfied customers
Am a beneficiary of a Bank account in Uk, am in need to pay
Am a beneficiary of a Bank account in Uk , am in need to pay taxes , but I don't have enough money to pay for it before getting access to my money in UK , is there a solution ? … read more
Sam
Sam
Accountant
14,128 satisfied customers
My wife and i have a private investor plan for a grandchild
My wife and i have a private investor plan for a grandchild it is taxed at10% do I have to pay any extra tax I pay at higher rate and my wife pays no tax I do not fill tax returns but before I retired… read more
Sam
Sam
Accountant
14,128 satisfied customers
I have a question on capital gains tax on earnings abroad.
I have a question on capital gains tax on earnings abroad … read more
Sam
Sam
Accountant
14,128 satisfied customers
You did not answer the question I asked which was can the
You did not answer the question I asked which was can the loan I made to the company of 2.6m be deducted as a liability of the company from the valuation of the company?… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I invested in a Listed corporate bond three years ago
I invested in a Listed corporate bond three years ago through my bank. I have been declaring the coupon return i received as Interest income (Not dividend). I just sold my holding at a lower price tha… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
A UK tax resident and own shares in a uk company which owns
a UK tax resident and own shares in a uk company which owns a european dwelling which I use for holidays. I bought the shares for 2m some years ago when the property was valued at 2m. I have loaned th… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x