HCI and Fair Market Value

[pcwilson]

Hi

We ran an HCI scheme for our staff which is coming to an end in December. We need to charge our staff a one off payment to take ownership of the equipment, or they can opt to return it instead. We have to set the level of this payment at "fair market value (FMV)". How do I determine what is FMV for a 3 year old PC? If it was up to me, I'd charge everyone a nominal amount, say £5, but my FD thinks there may be tax implications for the staff if we set the amount too low. How likely is this?

I've spoken to HMRC Employers Helpline who advised me to Google for an answer, which I've been doing, but I can't find anyone selling 3 year old PCs and laptops. Anyone know of a website with prices for such old kit?

I'd appreciate advice from anyone who is in, or has been in, the same position.

Cheers

[buggalugs]

Ebay - search for 'completed items' in those criteria for a realistic market value.

[mcflurry]

PC's depreciate by something like 70% a year, so charge £50-£100ish