Reference no: EM13558139
The following items have been provided by a UK company, Azure plc, to employees earning more than £8,500 a year.
(a) A loan of £16,000 at 1% a year to Mr Andrews on 6 October 2013 which has been used to improve his private residence.
(b) A £3,000 interest free loan to Mrs Preece on 6 April 2013 which was used to finance her daughter's wedding.
(c) The loan of a TV and DVD system to Mr Charles from 6 June 2013, the asset having cost the company £800 in 2011 and having had a market value of £500 in June 2013.
(d) A long service award in December 2013 to Mrs Davies, the company secretary, comprising a gold wrist watch costing £1,000. Mrs Davies has been employed by the company since December 1988.
(e) The loan of a petrol engined BMW motor car to Mr Edgar from 6 April 2013. The car had a list price of £23,000. The car emits CO2 of 119g/km. The company pays all running costs, including fuel.
(f) The exclusive private use of a company flat in central London, by Mr Ford, the managing director.
The company acquired the flat in February 2011 for £100,000 and Mr Ford has used it since that date. The flat is fully furnished at a cost of £5,000 and the council tax paid by the company amounted to £500. The annual value is £900. The running costs of the flat amounting to £1,200 for 2013/14 were paid directly by Mr Ford.
(g) Removal expenses of £9,500 to Miss Jackson in September 2013 who moved from Plymouth to Liverpool to take up a new position in the Liverpool office in July 2013.
(h) The provision of two mobile phones to Mr Long on 6 April 2013 both of which were available for private use as well as business use. Azure Ltd paid £120 for the hire of each of the mobile phones for the tax year. The market value of each of the phones was £500. The cost of the calls made during the year was £300 for one of the phones and £400 for the other phone. 70% of these expenses related to business use.
Required
State in detail how each of the above items would be treated for 2013/14, computing the amount of any taxable benefit.