Removal or transfer costs: relocation companies: management fees: example
Part 4 Chapter 7 ITEPA 2003
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 ÷ £7,500) × £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|