C2W bike disposal

[chris-s]

OK, another C2W question, but one that I haven't seen before.

After much hassling from a couple of us in the office last summer, our employer implemented the c2w themselves rather than outsourcing it to a third party. Our current 12 months is nearly up and the original plan is either to pay a nominal final fee and then pay the tax on the difference or just leave them with the company and continue using them.

HOWEVER, a third option has just come up, what is to stop the bike being sold-off by the company to anyone other than ourselves? This would leave us with no tax liability and we can't figure out what tax implications would be put upon the company either. I think my granny is in the market for a new bike sometime soon, but can't afford much on her pension

Chris

 

[Norm]

It has come up before, but a long time ago and only in passing.

If the sale could be shown to be at arms length and not as a result of your employment, then there would be no tax liability - if it went through eBay, for instance, and someone got a bargain, there's no tax liability.

However, if you receive a benefit which arises from your employment, you may be table to income tax, just as you would if your employer paid your salary over to your gran each month.