Other benefits

General ruleamount assessable is cost (including VAT) to employer.


  • relocation expenses up to 8,000 pounds.
  • incidental expenses up to 5 pounds per night in UK.
  • incidental expenses up to 10 pounds per night outside UK.
  • parties not exceeding 75 pounds per employee p.a.
  • private use of a computer costing under 2,000 pounds.


  • less than 5,001 pounds: no benefit.
  • over 5,000 pounds: taxable on deemed interest at ‘official rate’.
  • special rules apply for mortgages and foreign currency loans.


  • ‘official rate’ on excess over 75,000 pounds of cost to employer, plus rateable value.
  • for non-UK homes, market rent only.

‘Official rate’ – 6.25% for tax year 2000/2001 (1999/2000 6.25%).

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