EIM03129 - 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 拢1,500.
| Service provided | Amount |
|---|---|
| Legal fees | 拢1,500 |
| Estate agent鈥檚 fees | 拢1,500 |
| Removal costs | 拢500 |
| Loan interest | 拢2,500 |
| Counselling | 拢1,500 |
| Total | 拢7,500 |
Only 拢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 (拢1,500 梅 拢7,500) 脳 拢6,000 = 拢1,200.
The amount chargeable to tax will be:
| Cost of services provided | 拢7,500 | 听 |
|---|---|---|
| Management fees | 拢1,500 | 听 |
| 听 | 拢9,000 | 听 |
| Less exempt expenses and benefits | 拢6,000 | 听 |
| and exempt management fees | 拢1,200 | 拢7,200 |
| Taxable expenses and benefits | 拢1,800 | 听 |