Job-related accommodation exemption (UK)
Employer-provided living accommodation can be exempt from an employment benefit charge in specified circumstances. These include accommodation necessary for proper performance of the employee’s duties, accommodation for better performance where provision is customary for that type of employment, and qualifying special security arrangements. The statutory conditions, limitations applying to certain directors, related expenses and assessment year must be checked; accommodation being useful to an employee is not enough by itself.
Worked example
An employer provides accommodation where an employee must reside to perform the duties properly. The adviser checks the statutory conditions and any relevant director restrictions before deciding whether the accommodation benefit is exempt.
Common mistake
Assuming all employer-provided accommodation is exempt merely because it is close to work, or assuming an exemption for the accommodation automatically settles every related expense.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Supporting | June 2026–June 2027 |