Particular benefits: assets transferred: associated costs
Section 326 ITEPA 2003Section 326 ITEPA 2003 exempts from tax certain paid or reimbursed expenses that arise in connection with an asset transferred by reason of the employment.
This exemption most commonly applies where a director or employee who benefits from a relocation package, transfers his house to the employer who pays the acquisition cost.
The expenses must be incurred as a result of that transfer and must not be of a type normally met by the transferor. Thus the disposal costs of a house sold to an employer under a relocation package are not within the exemption, as a vendor would normally meet these costs.