(1). C The property was purchased more than six years before first being provided, so the additional benefit is based on the market value when first provided. It will be calculated on a figure of £123,000 (198,000 - 75,000).
(2). D The benefit calculated using the average method is £2,533 as follows:
14,200 + 9,500 x 4% £474
(3). A The benefit is calculated as the greater of market value at the date the employee acquires the asset and the cost less any amounts previously assessed as benefits.
(4). B The benefit is £430 (5,160 x 20% x 5/12).
(5). C The provision of meals in a staff canteen does not give rise to a taxable benefit, payments for home working are exempt up to £4 per week, and up to £8,000 of relocation costs are exempt.