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HMRC internal manual

Tax Credits Technical Manual

Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Employment-related Asset Transfer

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1 (item 14A)

Payment or reimbursement of expenses incurred in connection with an employment-related asset transfer (section 326 (2) of the ITEPA 2003) where no liability to income tax arises.

For example this can happen when an employee, who is being relocated, transfers his/her house to the employer (or someone acting on his behalf) and the employer pays the transaction costs.

(See EIM21662)


Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.