SE03130 - Removal or transfer costs: relocation companies; guaranteed sale price schemes

Schedule 11A ICTA 1988

Frequently a relocation company package will also include a scheme which offers the employee a guaranteed sale price for the old home. The tax consequences of a guaranteed sale price scheme will depend on the precise form of the agreements between the employer, the employee and the relocation company. An Inspector should examine the documents relating to the guaranteed sale price scheme.

The 5 examples provided (see example SE03133 to SE031337) relate to a director or employee within Part V Chapter II ICTA 1988 and cover a number of possible arrangements. But they are not meant to be exhaustive. If there is any doubt about the effect of a particular arrangement, the Inspector should submit the case with all the documents to Employment Income Technical.