(1). Richard’s employer has provided him with living accommodation since 1 June 2011. The property was purchased on 10 May 2004 for £162,000, and was valued at £198,000 on 1 June 2011. Improvements costing £7,000 were made to the property during November 2008. On what figure will Richard’s additional living accommodation benefit be calculated for the tax year 2014–15?
A £198,000
B £94,000
C £123,000
D £169,000
(2). Wong’s employer provided her with an interest free loan throughout the tax year 2014–15. The balance outstanding at 6 April 2014 was £24,200, and at 5 April 2015 it was £19,500. Wong’s taxable benefit in respect of this loan is calculated using the average method. What is the taxable benefit for the tax year 2014–15?
A £1,420
B £76
C £634
D £710
(3). Where an employee is given an asset that has previously been provided to them, how is this benefit calculated?
A The greater of market value at the date the employee is given the asset and the cost less any amounts previously assessed as benefits
B The lower of market value at the date the employee is given the asset and the cost less any amounts previously assessed as benefits
C The greater of market value at the date the employee is given the asset and the cost plus any amounts previously assessed as benefits
D The lower of market value at the date the employee is given the asset and the cost plus any amounts previously assessed as benefits
(4). On 1 November 2014, Nancy’s employer provided her with a home entertainment system costing £5,160 for her personal use. What is the taxable benefit for the tax year 2014–15?
A £1,032
B £430
C £2,150
D £5,160
(5). Which of the following benefits will never be exempt?
A Meals in a staff canteen
B An allowance for working from home
C Health club membership
D Relocation costs