8.1 Kim lives in a house provided by her employer. The house cost her employer £210,000 in 2014 and a further £27,500 was spent on improvements in 2015. 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 2016-17 (assuming that the official rate of interest is 3% per annum).