On 1 June 2017 , Stephen was provided by his employer with an interest -free loan of

Question:

£20,000. He repaid £5,000 of this loan on 1 January 2018 and repaid another £3,000 on 1 March 2018. Compute the taxable benefit in 2017-18 using:

(a) the normal method

(b) the alternative method.

Assume that the official rate of interest is 2.5 % per annum. Perform all calculations to the nearest month and to the nearest pound.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation Finance Act 2017

ISBN: 9781292200804

23rd Edition

Authors: Alan Melville

See More Books

Question Posted: Feb 06, 2024 05:00 AM

See More Questions

On 1 June 2021, Stephen was provided by his employer with an interest-free loan of 20,000. He repays 5,000 of this loan on 1 January 2022 and repays another 3,000 on 1 March 2022. Compute the taxable...
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
Edward White is 45 years old. He has been married to Eva White for 20 years. During 2020, Eva has Net Income For Tax Purposes of $6,400, all from investments. During 2020, Edward works 237 hours for...
Find the lengths of the curves. The cardioid r = 1 + cos
Show by a series of equations, using any necessary organic or inorganic reagents, how acetic acid can be converted to each of the following compounds: (a) H2NCH2CO2H (e) ICH2CO2H (b) C6H5OCH2CO2H (f)...
Access EDGAR online (www.SEC.gov) and locate the 10-K report of The Gap, Inc., (ticker GPS) filed on March 26, 2012. Review its financial statements reported for the year ended January 28, 2012, to...
CI0.5. Do you consider the direct method to be more informative than the indirect method of presenting cashflow from operations?
Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Boden Company...
Book Depot Inc. sells on terms of 2/15, net 90. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round the answer to two decimal place
Jim is the managing director of a company and earns a basic salary in 2017 -18 of 225,000. He receives benefits from the company during the year as follows: (a) He is provided with the use of a...
Throughout 2017-18, Niall is provided by his employer with a diesel -engined motor car which had a list price of 24,200 when new a nd has an emission rating of 15 7g/km. Niall's employer pays all of...
The value 8.1 in a dataset with mean 5 and standard deviation 2. Find and interpret the z-score for the data value given.
Finding Confidence Intervals. In Exercises 9-16, assume that each sample is a simple random sample obtained from a population with a normal distribution. Professor Evaluation Scores Listed below are...
Pacifico Company, a U . S . - based importer of beer and wine, purchased 1 , 7 0 0 cases of Oktoberfest - style beer from a German supplier for 4 5 9 , 0 0 0 euros. Relevant U . S . dollar exchange...
7.C. a. When you add two vectors you get another vector: yes or no? b. When you subtract two vectors you get another vector: yes or no? c. Given the coordinate system below where increasing numbers...
Problem 1 At a given instant, the position of a plane at A and a train at B are measured relative to a radar antenna at O. Determine the distance d between A and B at this instant. To solve the...
The Bell-Boeing V-22 Osprey tiltrotor is both an airplane and a helicopter. It's advantage is the ability to rotate its engines and rotors to vertical position for take-off, landings, and helicopter...
If And g : Ã Ã is continuous, Show that his need not be true, if g is not continuous. Xn >0
The Place-Plus real estate development firm in Problem 24 is dissatisfied with the economists estimate of the probabilities of future interest rate movement, so it is considering having a financial...
Explain the term "generally accepted accounting practice" ( GAAP ). Is there just one GAAP which is accepted worldwide? If not, why not?
Outline the structure and functions of: (a) The IFRS Foundation. (b) The International Accounting Standards Board (IASB). (c) The IFRS Advisory Council. (d) The IFRS Interpretations Committee.
Outline the structure of an international standard (IFRS Standard or IAS Standard).
Comfort Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Stenback Inc. costs $1,000,000 and will last five years and have...
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 71,000 shares of $10 par common stock. 8,500 shares of $60 par, 6 percent, noncumulative preferred stock. On...
Read the following case and then answer questions On 1 January 2016 a company purchased a machine at a cost of $3,000. Its useful life is estimated to be 10 years and then it has a residual value of...

On 1 June 2017 , Stephen was provided by his employer with an interest -free loan of

Question:

Step by Step Answer:

Sure I can explain this In this case since Stephens employer provided him with an interestfree loan ...View the full answer

Taxation Finance Act 2017

Students also viewed these Business questions