payroll
28th February 2005, 17:04
Reference: http://www.inlandrevenue.gov.uk/news/comps-and-bikes.htm
Good news this week as a simplification of the ‘benefits in kind’ rules on employer-provided computers and bicycles was announced. It clarifies the position when an employee buys a computer or bicycle that has previously been loaned to them by their employer.
This announcement is aimed at removing any uncertainty about whether or not a tax charge arises if, at the end of the loan period, the employee buys the computer or bicycle at its current market value.
As from 6 April there will be a single basis of valuation - the market value will always apply. So when an employee buys a previously loaned computer or bicycle for its full current market value, no tax charge will arise on the transfer of ownership.
Full details are available through the link above.
Good news this week as a simplification of the ‘benefits in kind’ rules on employer-provided computers and bicycles was announced. It clarifies the position when an employee buys a computer or bicycle that has previously been loaned to them by their employer.
This announcement is aimed at removing any uncertainty about whether or not a tax charge arises if, at the end of the loan period, the employee buys the computer or bicycle at its current market value.
As from 6 April there will be a single basis of valuation - the market value will always apply. So when an employee buys a previously loaned computer or bicycle for its full current market value, no tax charge will arise on the transfer of ownership.
Full details are available through the link above.