Employer owned property and sub-letting

Source: HM Revenue & Customs | | 11/06/2019

In some industries, employers provide accommodation to employees because this is required by the nature of the job. There are no tax charges in respect of the provision of living accommodation where

  • it is necessary for the proper performance of the employee’s duties that he or she should reside in the accommodation, or
  • the accommodation is provided for the better performance of the employee’s duties, and the employment is one of the kinds for which it is customary for employers to provide accommodation for the employee, or
  • there is a special threat to the employee’s security, special security arrangements are in force and the employee resides in the accommodation as part of those arrangements.

However, there can be other scenarios whereby an employee is provided with living accommodation and is allowed to sub-let the property. If this is the case, and even if the employee does not sub-let, the ability to sub-let is regarded as money's worth to the employee and will give rise to an earnings charge. 

This issue is covered in HMRC’s manuals. HMRC makes the point that the ability to sub-let is unlikely to be encountered that often in practice.



 

Latest News

Home to work travel that may be allowed
09/07/2019 - More...
Whilst there is usually no tax relief for ordinary commuting - home to work - there are a number of exceptions. The term 'ordinary commuting' is defined to mean travel

Its still possible to claim 100% tax allowance for electric vehicles
09/07/2019 - More...
First Year Allowances (FYA’s) are available for expenditure on new unused electric vehicles and other cars within the threshold for low CO2 emissions. Businesses can claim

Search


Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login