(c) (i) Explain how Messier Ltd can assist Galileo with the cost of relocating to the UK a

Question

(c) (i) Explain how Messier Ltd can assist Galileo with the cost of relocating to the UK and/or provide him with

interest-free loan finance for this purpose without increasing his UK income tax liability; (3 marks)

Answer 1

正确答案：
(c) (i) Relocation costs
Direct assistance
Messier Ltd can bear the cost of certain qualifying relocation costs of Galileo up to a maximum of ￡8,000 without
increasing his UK income tax liability. Qualifying costs include the legal, professional and other fees in relation to the
purchase of a house, the costs of travelling to the UK and the cost of transporting his belongings. The costs must be
incurred before the end of the tax year following the year of the relocation, i.e. by 5 April 2010.
Assistance in the form. of a loan
Messier Ltd can provide Galileo with an interest-free loan of up to ￡5,000 without giving rise to any UK income tax.