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HMRC internal manual

Employment Income Manual

Particular benefits: transfer of used or depreciated assets: living accommodation

The special rule at EIM21650 relating to the transfer of an asset which has previously been available for the private use of a director or employee does not normally apply to living accommodation. It does apply to non-residential accommodation such as a garage or workshop.

The transfer of living accommodation will normally represent earnings from the employment chargeable under Section 62 ITEPA 2003. The special rule at EIM21655 relating to an asset which has depreciated or been used should only be invoked if liability under Section 62 cannot be established (see EIM08001 onwards). The guidance at EIM11478 and EIM11479 should be followed with any necessary modifications as regards:

  • the information the District Valuer will need if you ask for a “not negotiated” valuation and
  • what you should do if the employee disputes the District Valuer’s opinion on appeal against a charge to tax on employment income.