106Living accommodation provided for employees
(1)In subsection (1) of section 145 of the Taxes Act 1988 (living accommodation provided for employees), the words “and is not otherwise made the subject of any charge to him by way of income tax” shall be omitted.
(2)After section 146 of that Act there shall be inserted the following section—
“146APriority of rules applying to living accommodation
(1)This section applies where, within the meaning of section 145, living accommodation is provided in any period for any person by reason of his employment.
(2)The question whether the employee is to be treated under section 145 or 146 as in receipt of emoluments in respect of the provision of the accommodation shall be determined before any other question whether there is an amount falling to be treated in respect of the provision of that accommodation as emoluments.
(3)Tax under Schedule E in respect of the provision of the accommodation shall be chargeable on the employee otherwise than in pursuance of sections 145 and 146 to the extent only that the amount on which it is chargeable by virtue of those sections is exceeded by the amount on which it would be chargeable apart from those sections.”
(3)This section applies for the year 1996-97 and subsequent years of assessment.