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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Living accommodation: description of exemptions

Sections 99 and 100 ITEPA 2003

There are four situations where Part 3 Chapter 5 ITEPA 2003 does not apply to provided living accommodation:

  • see EIM11336 onwards for an explanation of particular jobs treated as having representative occupier status at 5 April 1977
  • see EIM11341 onwards for an explanation of the necessary for the proper performance exemption
  • see EIM11346 onwards for an explanation of the customary and better performance exemption
  • see EIM11361 onwards for an explanation of the special security exemption.

Most directors do not qualify for the second and third of these exemptions (see EIM11366).

If the living accommodation is not chargeable other exemptions and reliefs may be due (see EIM11332).

These exemptions only apply where the accommodation is living accommodation. The exemptions do not apply to board and lodgings (see EIM11321).

Any doubt or dispute about whether an exemption is due should be dealt with by an Officer at HO grade or above.