Kim lives in a house provided by her employer. The house cost her employer £2 42,500 in 2015 and a further £27,500 w as spent on improvements in 2016.The house has a gross rateable value of £3,700 and it has been agreed with HMRC that there is 12%

business use. Kim pays rent of £400 per month to her employer. Compute the taxable benefit in 2017-18 (assuming that the official rate of interest is 2.5% per annum).