Tax exempt benefits

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

There is a long list of benefits which are completely exempt from tax. This note highlights some of the more familiar tax exempt benefits. Additional information is available in the Common exempt or non-taxable benefits guidance note.

Pension contributions

No taxable benefit arises if an employer pays into either the employee’s occupational pension scheme or into the employee’s personal pension scheme.

One of the most valuable benefits that employees receive from their employers is an employer’s contribution to the employee’s pension scheme. This is exempt from tax as long as the pension scheme is registered and pension contributions do not exceed any relevant maximum allowances. For more information, see the Pension contributions by owner managed companies guidance note.

Removal expenses

The reimbursement of removal expenses is exempt, up to a maximum amount of £8,000. For example, if an employee is transferred to another office and the employer pays the relocation expenses, no taxable benefit will arise as long as the cost of the move is less than £8,000.

The exemption applies to ‘removal benefits’ and to the

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Transfer of assets to beneficiaries ― legal, administration and tax issues

Transfer of assets to beneficiaries ― legal, administration and tax issuesThis guidance note outlines how assets are transferred to beneficiaries and the tax consequences that flow from the transfer. Whether a payment is income or capital is discussed in the Payments to trust beneficiaries guidance

14 Jul 2020 13:52 | Produced by Tolley Read more

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more

��˾��ҹ��