EIM21721 - Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit

Section 315 ITEPA 2003

Where an employee is provided with job- related living accommodation by reason of his employment there is a limit to the amount of taxable benefit arising under Part 3 Chapter 10 ITEPA 2003 on certain other benefits which he may also be provided with. »Ê¹ÚÌåÓýapp benefits are:

  1. heating, lighting and cleaning the premises
  2. repairs to the premises, their maintenance or decoration
  3. the provision of furniture, equipment or other items which are normal for domestic occupation.

»Ê¹ÚÌåÓýapp limit applying to the total of all such benefits is:

  • 10 per cent of the net amount of the earnings from the employment (see EIM21722) less
  • any contribution made by the director or employee to the person incurring the expenditure.

If the accommodation is provided for less than a year the 10 per cent limit of the net emoluments is reduced proportionately.

As regards which employees qualify as being provided with job-related living accommodation see EIM11331 onwards.