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Living accommodation


Produced by Tolley in association with
Employment Tax
Guidance

Living accommodation


Produced by Tolley in association with
Employment Tax
Guidance
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Employers may provide living accommodation to their employees ‘by reason of their employment’. There is specific tax legislation that covers the provision of accommodation and the expenses associated with it. In certain circumstances, a statutory exemption from tax is available for particular employments.

This guidance note outlines the benefits in kind potentially taxable when living accommodation is provided to an employee, alongside potential exemptions which may apply. Other benefits, which are unlikely to be exempted, are outlined in the Utilities, council tax and other bills in accommodation and the Furniture in accommodation provided by employer guidance notes. An overview of the different benefits possibly taxable is also given in the Client factsheet ― employer provided accommodation ― how various payment elements are taxed as benefits in kind .

Living accommodation benefit

A tax liability on the provision of accommodation to an employee is imposed by ITEPA 2003, s 102. The section states that if accommodation is provided for all or part of a tax year, then the cash equivalent of the benefit should be treated as earnings.

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Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties.   Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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  • 28 Feb 2024 13:31

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

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