Tx notes fa22 Final

June 2023 to March 2024 exams
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Chapter 9
Answer to Example 1
 
 
 
 
The mileage allowance of £3,600 (12,000 at 30p) received is tax free. However, Kerry will be entitled 
to a deduction of £1,400 computed as follows:
Answer to Example 2
 
 
 
 
As the property had been owned by the employer for more than 6 years when Jones first occupied it 
and the property had cost more than £75,000 an expensive accommodation benefit will arise based 
on the market value when Jones first occupied.
Authorised rate
£
10,000 miles at 45p
4,500
2,000 miles at 25p
500
5,000
Mileage allowance from employer (12,000 
×
30p)
(3,600)
Allowable deduction
1400
£
Accommodation benefit - Annual Value
4,000
Less: Employee contribution for personal use
(500)
3,500
Additional accommodation benefit (120,000 – 75,000) 
×
2%
900
Total assessable benefit
4,400

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June 2023 to March 2024 exams
Watch free ACCA TX lectures
Answer to Example 3
 
 
 
 
(a)
Gift of TV
The benefit is £750 since this is greater than the TV’s market value when given to Gerald (£250)
(b)
Sale of TV to Gerald for £250
Notes :
1.
Where the benefit for use is provided for only part of tax year the benefit is reduced 
proportionately.
2.
Gerald would also have been taxed on the benefit of using the TV.
Taxed in 2021/22 – use £150
Taxed in 2022/23 – Gift 750 (a) or £500 (b)
£
Market value when first made available to Gerald
900
Less: Benefit already assessed 2021/22 : (900 
×
20% 
×
10/12)
(150)
Taxable benefit on gift: 2022/23
750
£
Benefit calculated in (a) above
750
Less: Price paid
(250)
Taxable benefit on gift: 2022/23
500

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244
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