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Section 99(2) ITEPA 2003

One of the two conditions of Section 99(2) ITEPA 2003 which prevents Part 3 Chapter 5 ITEPA 2003 from applying to provided living accommodation is that of better performance (see EIM11346). »Ê¹ÚÌåÓýapp test is an objective one. »Ê¹ÚÌåÓýapp employee has to show that by occupying the accommodation provided the employee really can perform the duties better than if the employee lived elsewhere.

»Ê¹ÚÌåÓýapp test is not satisfied merely because accommodation is provided close to the place of employment so that the employee can get to work more easily. »Ê¹ÚÌåÓýapp duties of an employment do not normally begin until the employee arrives at the place of work. »Ê¹ÚÌåÓýapp distance the employee has to travel does not therefore affect the performance of those duties. Consequently it is necessary to look at the duties, if any, that are performed outside the employee’s normal hours (including any normal unsocial hours) of attendance at the place of employment.

For details of how to decide if the test is met in practice see EIM11350.