do i pay tax on house???

peaches67

Please help?

Do I pay tax on a house that willbe purchased for me by the company I work for and then when i sell my house, i repay it back with a mortgage in one go. Or do the company have to pay tax on it??

mrkbrrws

I think for anyone to suggest what the tax implications might be we need to be clear what the arrangement is. Is this what you are proposing:-

1.) Your employer buys a house.
2.) You live there.

Then, sometime later:-
3.) You sell your own home.
4.) You take out a mortgage on the house owned by your employer.
5.) You buy the house from your employer at market value.

Also, confirm if there is any reason why you are required to live in the new house by reason of your employment. To me, this doesn't sound like a normal thing for a company to do for an employee, is there a particular reason why they are offering to do so?

peaches67

its not complicated.

employment re-locates me....havent sold house yet, nice company offered to buy me a house so I can move my family to my new work location, as soon as my house sells i then buy back the new house from them!

mrkbrrws

The tax implications would appear to be:-

1.) A benefit in kind during the period which you live in a house provided by your employer. You would pay Income Tax on the value of this benefit and your employer would have to pay Class 1A National Insurance Contributions.

2.) No Capital Gains Tax payable by yourself as you would be selling your previous private residence within 3 years of moving out.

3.) Corporation Tax payable by your employer on any gain made between buying the house and selling it to you.