A relocation package provides an all-inclusive service with a fixed management fee of £1,500.
| Services provided: | |||
| legal fees | £1,500 | ||
| estate agent's fees | £1,500 | ||
| removal costs | £500 | ||
| loan interest | £2,500 | ||
| counselling | £1,500 | ||
| Total | £7,500 |
Only £6,000 is exempt as the costs of counselling do not
qualify for exemption.
The proportion of the management fee that qualifies for
exemption is:
| £1,500 x £6,000 | = | £1,200 |
| £7,500 |
The amount chargeable to tax will be:
| Cost of services provided | £7,500 | |
| Management fees | £1,500 | |
| £9,000 | ||
| Less exempt expenses and benefits | £6,000 | |
| and exempt management fees | £1,200 | £7,200 |
| Taxable expenses and benefits | £1,800 |
