Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 5

Taxable benefits: living accommodation

Exceptions

Accommodation provided for performance of duties
99
1
This Chapter does not apply to living accommodation provided for an employee if it is necessary for the proper performance of the employee’s duties that the employee should reside in it.
2
This Chapter does not apply to living accommodation provided for an employee if—
a
it is provided for the better performance of the duties of the employment, and
b
the employment is one of the kinds of employment in the case of which it is customary for employers to provide living accommodation for employees.
3
But if the accommodation is provided by a company and the employee (“E”) is a director of the company or of an associated company, the exception in subsection (1) or (2) only applies if, in the case of each company of which E is a director—
a
E has no material interest in the company, and
b
either—
i
E’s employment is as a full-time working director, or
ii
the company is non-profit-making or is established for charitable purposes only.
4
“Non-profit-making” means that the company does not carry on a trade and its functions do not consist wholly or mainly in the holding of investments or other property.
5
A company is “associated” with another if—
a
one has control of the other, or
b
both are under the control of the same person.