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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Carers – exemption for board and lodging

Section 306A ITEPA 2003

From the start of the 2016/17 tax year, the benefit of board and lodging provided to carers in the home of the person they are caring for is exempt from tax.

The exemption applies to carers whose employment duties consist wholly or mainly in the provision of personal care to someone in their own home. The recipient of the care must need the personal care because of:

  • Old age;
  • Mental or physical disability;
  • Past or present dependence on alcohol or drugs;
  • Past or present illness or
  • Past or present mental disorder.


Where the exemption applies, there is no liability to income tax under the benefits code in respect of board and lodging provided to the carer provided it is:

  • On a reasonable scale;
  • At the recipient’s home, and
  • By reason of the individual’s employment as a home care worker.


When considering what is on a reasonable scale, you should take a common sense approach.