As from 1 January 2020, an employee is provided by his employer with the use of a house which has an annual value of £5,300. The following information is relevant:

(a) The employer bought the house in 2017 at a cost of £270,000 and spent £35,000 on improvements in 2018. A further £10,000 was spent on improvements in July 2020.

(b) The employee pays £3,000 per annum to his employer in relation to this benefit.

Calculate the taxable benefit in 2020-21, assuming that the official rate of interest as at 6 April 2020 was 2.25% per annum.