(ii) List the additional information required in order to calculate the employment income benefit in respect
of the provision of the furnished flat for 2007\/08 and advise Benny of the potential income tax
implications of requesting a more centrally located flat in accordance with the company’s offer.
(4 marks)
正确答案：
(ii)Theflat
Thefollowingadditionalinformationisrequiredinordertocalculatetheemploymentincomebenefitinrespectofthe
flat
–Theflat’sannualvalue
–Thecostofanyimprovementsmadetotheflatpriorto6April2007
–ThecostofpowerwaterrepairsandmaintenanceetcbornebySummerGlowplc
–ThecostofthefurnitureprovidedbySummerGlowplc
–AnyuseoftheflatbyBennywhollyexclusivelyandnecessarilyforthepurposesofhisemployment
Tutorialnote
ThemarketvalueoftheflatisnotrequiredasSummerGlowplchasowneditforlessthansixyears
Oneelementoftheemploymentincomebenefitinrespectoftheflatiscalculatedbyreferencetoitsoriginalcostplus
thecostofanycapitalimprovementspriorto6April2007IfBennyrequestsaflatinadifferentlocationthiselement
ofthebenefitwillbecomputedinsteadbyreferencetothecostofthenewflatwhichinturnequalstheproceedsof
saleoftheoldflat
AccordinglyifasislikelythevalueoftheflathasincreasedsinceitwaspurchasedBenny’semploymentincome
benefitwillalsoincreaseTheincreaseintheemploymentincomebenefitwillbetheflat’ssalesproceedslessitsoriginal
costlessthecostofanycapitalimprovementspriorto6April2007multipliedby5%
