SE03127 - Removal or transfer costs: sale of property to employer

Schedule 11A ICTA 1988

If the employer 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
• by concession an employee or director within Part V Chapter II ICTA 1988 is not liable for tax in respect of costs incurred by the employer in buying, maintaining or selling the property (see ESC A85 at SE21662)
• 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 SE08004.