CG64561 - Private residence relief: job related accommodation: employee or director

Accommodation provided for an employee is job related if it meets the conditions in TCGA92/S222 (8)(a). The instructions at SE11331 - SE11362 or EIM11331 - EIM11362 explain these conditions.

If the employee is a director there are further conditions to be fulfilled in TCGA92/S222 (8B). The instructions SE11366 or EIM11366 explain these further conditions.

The extension of private residence relief for employees and directors residing in job related accommodation was introduced by Section 50 FA1978 to apply to occupation of job related accommodation at any time after 30 July 1978. So any dwelling house which an employee or director in job related accommodation intends to occupy as their only or main residence can only be treated as a residence for a period after 30 July 1978. See the example at CG64565.

Following the introduction of rebasing in the 1988 Finance Act, which applies to any disposal on or after 6 April 1988, the period of ownership for the computation of private residence relief cannot include any period before 31 March 1982, TCGA92/S223 (7). See the instructions at CG64940+ and the example at CG64944. So the limitation of the relief for employees or directors in job related accommodation to periods after 30 July 1978 is only relevant in relation to disposals before 6 April 1988.