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HMRC internal manual

Employment Income Manual

Accommodation: reason for the charge

Part 3 Chapters 1, 5 and 10 ITEPA 2003

EIM11301 to EIM11799 deal with cases where an employee is provided with accommodation by reason of his or her employment. The employee cannot normally convert into money the benefit of being able to live in the provided accommodation. As there is no “money’s worth”, accommodation does not count as general earnings within Section 62 ITEPA 2003 (see EIM00511).

Special tax rules are needed to charge the employee on the value of the accommodation. You will find these rules in Part 3 Chapter 5 ITEPA 2003 for living accommodation and Part 3 Chapter 10 ITEPA 2003 for other accommodation, such as board and lodging.