Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 5Taxable benefits: living accommodation
Supplementary
110Meaning of “annual value”
1
For the purposes of this Chapter the “annual value” of living accommodation is the rent which might reasonably be expected to be obtained on a letting from year to year if—
a
the tenant undertook to pay all taxes, rates and charges usually paid by a tenant, and
b
the landlord undertook to bear the costs of the repairs and insurance and the other expenses (if any) necessary for maintaining the property in a state to command that rent.
2
For the purposes of subsection (1) that rent—
a
is to be taken to be the amount that might reasonably be expected to be so obtained in respect of the letting of the accommodation, and
b
is to be calculated on the basis that the only amounts that may be deducted in respect of services provided by the landlord are amounts in respect of the cost to the landlord of providing any relevant services.
3
If living accommodation is of a kind that might reasonably be expected to be let on terms under which—
a
the landlord is to provide any services which are either—
i
relevant services, or
ii
the repair, insurance or maintenance of any premises which do not form part of the accommodation but belong to or are occupied by the landlord, and
b
amounts are payable in respect of the services in addition to the rent,
the rent to be established under subsection (1) in respect of the accommodation is to be increased under subsection (4).
4
That rent is to include—
a
where the services are relevant services, so much of the additional amounts as exceeds the cost to the landlord of providing the services;
b
where the services are within subsection (3)(a)(ii), the whole of the additional amounts.
5
In this section “relevant service” means a service other than the repair, insurance or maintenance of the accommodation or of any other premises.
111Disputes as to annual value
1
This section applies if there is a dispute as to the amount of the annual value of living accommodation for the purposes of this Chapter.
2
The question is to be determined by the General Commissioners.
3
The Commissioners must hear and determine the question in the same way as an appeal.
112Meaning of “person involved in providing the accommodation”
For the purposes of this Chapter “person involved in providing the accommodation” means any of the following—
a
the person providing the accommodation;
b
the employee’s employer (if not within paragraph (a));
c
any person, other than the employee, who is connected with a person within paragraph (a) or (b).
113Meaning of “the property”
For the purposes of this Chapter “the property”, in relation to living accommodation, means the property consisting of that accommodation.