I have a client who is a minister of religion about to retire as he nears 65. Not one of the mainstream churches, but PAYE applied. The church wants to give him the house they own which has been the manse. I have had to tell them that this would be taxable in full at market value.
If they let him live on in the house, rent-free, after he retires, will this be taxable on him?
If so will this be on the market rent for such a house? (It seems the employe benefit-in-kind calculations at EIM11480 would not apply as he will no longer be an employee.)
I presume their only other options for funding his retirement would be to pump money into a pension plan (then 25% tax-free sum available) or simply keep him on the payroll.
Thanks for thinking about this post.