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Section 62 ITEPA 2003

It is common for an employee to:

• own the property he lives in, or
• rent the property from a third party, not his employer.

In both cases the employer may pay the employee extra salary or a rent allowance to help with the accommodation costs. This extra salary or rent allowance will count as earnings under Section 62 ITEPA 2003 (see EIM00511 onwards).

»Ê¹ÚÌåÓýapp payment may be exempted from the earnings charge if it was a qualifying removal expense (see EIM03103 onwards).

»Ê¹ÚÌåÓýappre may also be a Section 337 or 338 ITEPA 2003 deduction due where the accommodation qualifies for relief as part of allowable travelling expenses (see EIM31805).

»Ê¹ÚÌåÓýappre will be no further earnings charge under Part 3, Chapter 5 ITEPA 2003 (living accommodation benefit).