Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Employment Income Manual

Living accommodation: meaning of by reason of the employment: provided by someone other than the employer

Section 97 ITEPA 2003For details of the meaning of by reason of the employment where living accommodation is provided by the employer see

EIM11407.

Where the living accommodation is provided by someone other than the employer, it is necessary to show that the individual’s employment is a factor in its provision. The employment need not be the main reason or the only one so long as it is a factor (see EIM20503).

If the provision of the accommodation is by reason of the employment of an employee who is a member of the same family or household as the person to whom the accommodation is provided, a charge will arise on that employee (see EIM11404).

Part 3 Chapter 5 ITEPA 2003 does not apply to a pensioner or a former employee. But if the continued use of living accommodation is provided after termination of employment see EIM12805 onwards.

Part 3 Chapter 5 does not apply in certain circumstances to living accommodation provided by a local authority to an employee of that local authority (see EIM11367).