EIM03127 - Removal or transfer costs: sale of
property to employer
Part 4 Chapter 7 ITEPA 2003
If the employee sells the old home to the employer for no more
than its open market value, then:
- if the employer meets the employee's
selling costs (or provides benefits such as legal services, etc)
the expenses and benefits will be taxable but eligible for
exemption
- an employee or director is not liable for
tax in respect of costs incurred by the employer in buying,
maintaining or selling the property because of Section 326 ITEPA
2003 (see
EIM21662)
- since any benefit arising to the employee
ends with the transfer of the property there is no tax charge if
the employer subsequently sells the property at a loss.
If the employee sells to the employer for more than market value
see
EIM08008.
