Nowadays, persuading staff to relocate and move home to a new area can be difficult for employers. But if you have to ask them to move to a more expensive area it's worse still. They face either having to pay more for what is essentially the same house or buy a smaller home – possibly even in a less attractive area. In these circumstances staff will invariably look to their employers to help out.

Under their current legislation the Inland Revenue are prepared to allow employers to help their staff buy a more expensive home – subject to the following criteria being met:-

• The price differences must be arrived at using an independent and 'arms length' process
• The price differential must be based on the value of a property in the new area which is comparable to the existing home owned by the employee in the old area – essentially therefore on a like for like basis
• The maximum differential sum supported by the employer must not exceed £50,000 (if the employer supports any sums over £50,000 the entire support funding becomes taxable in the hands of the employee as 'benefit in kind')
• Payments to the employee must be by reference to the interest he/she pays on the legitimate and necessary extra borrowing required to buy the new house
• The subsidy offered by the employer must not be a lump sum and must reduce (or taper) in equal steps over a maximum period of seven years

For a number of our clients needing to move staff we therefore offer our popular PinPoint Valuation Service which fully conforms to the requirements of the Inland Revenue. At an already sensitive time for staff, involving us in this process provides a cost effective solution to what could otherwise easily become a damaging bone of contention between employer and employee, and of course we ensure an independent and effective service.