Furniture in accommodation provided by employer

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Introduction

The provision of furniture by an employer to an employee is usually linked to the provision of living accommodation to the employee.

Whether the provision of furniture in employer provided accommodation is treated as a taxable benefit in full, or is capped, depends on whether the reason for the provision makes it an exempt benefit under specific legislation.

Annual value

If the furniture provided to the employee remains the property of the employer, the value of the benefit for tax purposes is based on the annual value of the furniture as an asset ― see the Assets ― made available to an employee guidance note.

Broadly speaking, the annual value is 20% of the market value of the furniture when it is first made available to the employee.

Cap on expenses connected with living accommodation ― application to provision of furniture where accommodation is exempt

If the living accommodation is exempt, then the amount is determined differently. The exemptions applying to the provision of living accommodation are discussed in detail in the Living accommodation

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Corporation Tax

Overseas property businesses for companies

Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in

14 Jul 2020 12:22 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

UU��ֱ��