ICAEW.com works better with JavaScript enabled.

Continue reading

Change of tenant's status in tied accommodation

Q: I provided an employee with accommodation that qualified as a non-taxable benefit because the accommodation was necessary for the performance of the duties. The employee has now retired but we would like to allow the former employee to continue living in the same accommodation and we will continue to cover the cost. Would this now be a taxable benefit as the accommodation is no longer required in the performance of duties?

A: In certain circumstances the accommodation can continue to be provided as a tax free benefit after retirement. The basic conditions are:

The exemption is provided in Part 1, s2 of SI 2007 No 3537 and, if the conditions are met, will be an excluded benefit for the purposes of s393B ITEPA2003 (see EIM15021 and EIM15022)