The following scenario relates to questions 1-5.
Richard’s employer provides him with the following benefits:
Required:
(1). On what figure will Richard’s additional living accommodation benefit be calculated for the tax year 2016–17?
A £198,000
B £94,000
C £123,000
D £169,000
(2). What is Richard's taxable benefit in respect of the interest free loan for the tax year 2016–17?
A £1,314
B £69
C £588
D £657
(3). Where an employee is given an asset which has previously been provided to them, how is the taxable benefit calculated?
A The greater of (1) market value at the date the employee is given the asset and (2) the cost less any amounts previously assessed as benefits
B The lower of (1) market value at the date the employee is given the asset and (2) the cost less any amounts previously assessed as benefits
C The greater of (1) market value at the date the employee is given the asset and (2) the cost plus any amounts previously assessed as benefits
D The lower of (1) market value at the date the employee is given the asset and (2) the cost plus any amounts previously assessed as benefits
(4). What is Richard’s taxable benefit in respect of the home entertainment system for the tax year 2016–17?
A £1,032
B £430
C £2,150
D £5,160
(5). Which of the following benefits can never be exempt?
A Meals in a staff canteen
B An allowance for working from home
C Health club membership
D Relocation costs