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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Particular benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit

Section 315 ITEPA 2003

Where an employee is provided with job- related living accommodation by reason of his employment there is a limit to the amount of taxable benefit arising under Part 3 Chapter 10 ITEPA 2003 on certain other benefits which he may also be provided with. The benefits are:

  1. heating, lighting and cleaning the premises
  2. repairs to the premises, their maintenance or decoration
  3. the provision of furniture, equipment or other items which are normal for domestic occupation.

The limit applying to the total of all such benefits is:

  • 10 per cent of the net amount of the earnings from the employment (see EIM21722) less
  • any contribution made by the director or employee to the person incurring the expenditure.

If the accommodation is provided for less than a year the 10 per cent limit of the net emoluments is reduced proportionately.

As regards which employees qualify as being provided with job-related living accommodation see EIM11331 onwards.