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HMRC internal manual

Employment Income Manual

Living accommodation: annual value of United Kingdom properties: further practical points

Section 105(3) ITEPA 2003

Persons providing living accommodation for employees by reason of their employment can be required to provide information about the value of the benefit. Normally an employer will declare the value on form P9D (for 2015/16 and earlier) or P11D as appropriate. If the employer fails to do so, or it is necessary to check the employer’s figures, ask the employer to state the gross or net rating value.

If the employer quotes a net figure you need to convert it to the corresponding gross figure. Assuming the net figure is at least £80 you can convert it to the gross figure by using a formula:

  • for properties in England, Wales and Northern Ireland

    • gross rating value = (1.2 x net rating value) + 32
  • for properties in Scotland

    • gross rating value = (1.2 x net rating value) + 4.

Whilst the onus is on the employer to provide the information you can get the gross rating value figure from the District Valuer (see EIM11437).

If it is necessary to apportion a gross rating value, the apportionment should be negotiated without reference to the District Valuer. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If, exceptionally, a valuation is required for a derated agricultural property, report the full facts to Corporation Tax and VAT Group (in Northern Ireland, the Director’s Office).

If, exceptionally, a conversion you have made from a net rating value to a gross rating value is not accepted for a property in Northern Ireland make a report to the Director’s Office in Northern Ireland before you make an appealable decision.