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Staff accommodation a business asset

A recent Tribunal decision allowed a restaurateur’s claim for relief from capital gains tax for a business asset on his disposal of a residential property which had been used to accommodate workers of his restaurant business.  Apparently the property was used solely to provide free accommodation for the restaurant’s overseas employees.  No rent was charged on the property and PAYE settlement agreements were entered into for the benefits in kind.

The Tribunal confirmed that the provision of accommodation to employees was capable of being an integral part of the overall trading activity and, accordingly, the property was used “wholly or partly for the purposes of the relevant trade” for capital gains tax purposes.



Date: 21st November, 2013
Author: Cathy Corns


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