Part 4Employment income: exemptions
Chapter 11Miscellaneous exemptions
Work accommodation, supplies etc.
316Accommodation, supplies and services used in employment duties
1
No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of the provision for an employee of accommodation, supplies or services used by the employee in performing duties of the employment if conditions A and B are met.
2
Condition A is that any use of the accommodation, supplies or services for private purposes by the employee or members of the employee’s family or household is not significant.
3
For this purpose, use “for private purposes” means—
a
use that is not use in performing the duties of the employee’s employment, and
b
use that is at the same time both use in performing the duties of an employee’s employment and other use.
4
Condition B is that where the provision is otherwise than on premises occupied by the person making it—
a
its sole purpose is to enable the employee to perform the duties of the employee’s employment, and
b
what is provided is not an excluded benefit.
5
The following are excluded benefits unless regulations under subsection (6) provide otherwise—
a
a motor vehicle, boat or aircraft, and
b
a benefit that involves—
i
the extension, conversion or alteration of living accommodation, or
ii
the construction, extension, conversion or alteration of a building or other structure on land adjacent to and enjoyed with such accommodation.
6
The Treasury may make provision by regulations as to what is an excluded benefit for the purposes of subsection (4)(b).
7
The regulations may provide that a benefit is an excluded benefit only if such conditions as may be prescribed are met as to the terms on which, and persons to whom, it is provided.