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HMRC internal manual

Employment Income Manual

Tax treatment of mineworkers: provision of housing

Mineworkers’ employers may provide rent-free houses for certain production officials. The officials concerned should be granted the exemption set out in EIM11331 and EIM11332, that is in respect of rent and annual value, council tax, water charges and repairs but not the provision of free coal, gas, electricity, etc., which should be charged in full except as provided below.

The exception applies to production officials who hold posts that are equivalent to the following former British Coal grades:

  • Area General Manager
  • Assistant Area General Manager
  • Area Production Manager
  • Area Mining Engineer
  • Area Mechanical Engineer
  • Area Electrical Engineer
  • Group Manager
  • Colliery Manager.

The employees referred to above may be regarded as exempt under Section 99(2) ITEPA 2003 (see EIM11331 onwards). Any charge on ancillary services may be subject to the limitation provided by Section 315 ITEPA 2003 (see EIM21721 onwards).

The exemption does not apply to any official employed in a capacity higher than these grades or their equivalents.