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HMRC internal manual

Employment Income Manual

Living accommodation exemption: customary and better performance: classes of employee

Section 99(2) ITEPA 2003

You can accept the following classes of employee get the living accommodation exemption available under Section 99(2) ITEPA 2003 (see EIM11346):

  • police officers (see EIM68150)
  • Ministry of Defence police
  • prison governors, officers and chaplains (see EIM68310)
  • clergymen and ministers of religion unless engaged on purely administrative duties (see EIM60020)
  • pre-registration house officers before 1 August 2008 (see EIM61012)
  • members of HM Forces
  • members of the Diplomatic Service
  • managers of newsagent shops that have paper rounds, but not those that do not
  • managers of public houses living on the premises
  • managers of traditional off-licence shops, that is those with opening hours broadly equivalent to those of a public house, but not those only open from 9 until 5 or similar
  • in boarding schools where staff are provided with accommodation on or near the school premises

    • head teacher
    • other teachers with pastoral or other irregular contractual responsibilities outside normal school hours (for example house masters)
    • bursar
    • matron, nurse and doctor

    (boarding schools include schools where some of the pupils are boarders)

  • stable staff of racehorse trainers who live on the premises and certain key workers who live close to the stables. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

There are some classes of employees for whom we accept that the customary test is met but for whom the better performance test has to be considered in each individual case. For a list of these classes of employees see EIM11352.