天美影院

Shared ownership

For information on the scheme for Key Housing and the Starter Homes Initiative, see EIM21735.

A tax liability may arise with shared ownership. If the employer owns part of the property then there is a benefit. If a third party, such as a RSL, owns part of the property and the property is provided by reason of the employment, then there is a benefit. (See EIM11408 for guidance on 鈥渂y reason of the employment鈥�.)

The amount of earnings is related to the share in the property, which the employee does not own.

Example 1

Sixty per cent of the property is owned by the key worker and 40% by a third party e.g. RSL or employer, the share in the property cost the employer, RSL etc less than 拢75,000, the GRV of the property is 拢1,200.

Answer

The amount of earnings under S105 is 拢480, 40% of the property鈥檚 GRV. [See EIM11431 for the calculation and EIM11432 which explains why GRV (gross rating value) is used.]

If the key worker pays rent of 拢480 or more per year then the benefit is extinguished.

If the share in the property cost the employer, RSL etc more than 拢75,000 the amount of the benefit is calculated in accordance with S106 ITEPA 2003.

Example 2

The facts are the same as above but the RSL spent 拢90,000 in buying a 40% interest in the property in May 2004.

Answer

(See EIM11480 for information on how to calculate the benefit.)

Cost of accommodation	拢90,000	-
less	拢75,000	-
Additional yearly rent of	拢15,000 脳 5% =	拢750
plus S105 benefit (GRV) (拢1,200 脳 40%)	-	拢480
Total	-	拢1,230

If the worker pays rent of 拢1,230 or more a year then the benefit is extinguished.