General rule – amount 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%).