(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 £493:
(24,200 + 19,600) / 2 x 2.25%
(3). A The benefit is calculated as the greater of (1) market value at the date the employee acquires the asset and (2) the market value less any amounts previously assessed as benefits.
(4). B The taxable 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 homeworking are exempt up to £6 per week, and up to £8,000 of relocation costs are exempt.