EIM02000 - Employment income: additional housing cost allowances
Part 2 ITEPA 2003
Many employers have arrangements to compensate employees for having to move to higher cost housing areas when they are compulsorily transferred. The compensation payments are generally described as Additional Housing Cost Allowances (AHCA). The payments are taxable under Part 2 ITEPA as earnings from the employment or a benefit by reason of the employment.