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HMRC internal manual

Employment Income Manual

Living accommodation exemption: connected exemptions and relief

Section 314 ITEPA 2003Where Part 3 Chapter 5 ITEPA 2003 does not apply to provided living accommodation there is a further exemption. The following amounts whether paid on behalf of, or reimbursed to, the employee are excluded from general earnings:

  • council tax
  • water charges, even if the charge is based on a metered supply
  • sewerage charges.