A relocation package provides an all-inclusive service with a fixed management fee of £1,500.
|estate agent's fees||£1,500|
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|
The amount chargeable to tax will be:
|Cost of services provided||£7,500|
|Less exempt expenses and benefits||£6,000|
|and exempt management fees||£1,200||£7,200|
|Taxable expenses and benefits||£1,800|