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clarification on relocation allowance
home2013
Posts: 33 Forumite
While switching job, i moved from a fully furnished rented place(100+ miles away from new job) to own house(in 15 mile radius) recently.
I understand I can claim legal fees of the purchase (which will also be exempt from tax and NIC)
I'm confused about the following:
* Domestic goods for the new residence (I bought and planning to buy - white goods such as washing machine, fridge). Is this a tax free relocation allowance? I read somewhere that I can claim this only from a own house to another own house, is that true?
* And planning to replace exhaust hood (kitchen cooker smoke extractor), is this a tax free relocation allowance?
* How about some carpenter work which seems essential, a tax free relocation allowance?
* Disturbance allowance - Are fitting new carpet and curtain a tax free relocation allowance? (for rented place to own house?). What else are disturbance allowance?
Any clarification on the above are highly appreciated. Thanks much for the time.
I will anyway be doing most/all of the above thing but my only question is to what are all the proper things to be claimed? ( I tried going through the relocation policy document of my employer and hmrc but still confused
)
I understand I can claim legal fees of the purchase (which will also be exempt from tax and NIC)
I'm confused about the following:
* Domestic goods for the new residence (I bought and planning to buy - white goods such as washing machine, fridge). Is this a tax free relocation allowance? I read somewhere that I can claim this only from a own house to another own house, is that true?
* And planning to replace exhaust hood (kitchen cooker smoke extractor), is this a tax free relocation allowance?
* How about some carpenter work which seems essential, a tax free relocation allowance?
* Disturbance allowance - Are fitting new carpet and curtain a tax free relocation allowance? (for rented place to own house?). What else are disturbance allowance?
Any clarification on the above are highly appreciated. Thanks much for the time.
I will anyway be doing most/all of the above thing but my only question is to what are all the proper things to be claimed? ( I tried going through the relocation policy document of my employer and hmrc but still confused
0
Comments
-
AFAIK your employer may reimbuse you for allowable expenses incurred up to an upper tax free limit of around £8.5k (maybe more/less).
This could cover EA fees (on sale of existing house, possibly letting agent fees if moving into rented), legal fees (on sale/purchase) and Stamp Duty on purchase.
IMO no expenses in relation to the items you mention would qualify.
Employer reimbursements in excess of the uppe rlimit will be taxable.0 -
thanks for the response, but I believe some of them are included in tax free allowance because they fall into the following:
"""
the expenses and benefits must fall into one of the six categories below:
the employee's sale of their old residence
their purchase of a new residence
transporting the employee's belongings to the new residence
associated travel and subsistence costs
domestic goods for the new premises
bridging loans
"""
from here: http://www.hmrc.gov.uk/payerti/exb/a-z/r/relocation.htm#10
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