BIM46820 - Specific deductions: rent & rates: property for employees

Where a trader provides residential premises for an employee, a deduction may be allowed for:

• any rent paid by the trader, and
• council tax, repairs and insurance

to the extent that such expenses exceed any rent paid by the employee or any contribution required from him or her. (As regards the business rate see BIM46835; and for council tax see BIM46840.)

Where rent paid by the employee exceeds the employer's costs the profit should be assessed as income from property (see BIM41000 onwards).

As regards the liability of the employee:

• for general guidance see EIM11301 onwards.
• where the trader bears any pecuniary liabilities of the employee, for example, council tax, see EIM00580.
• where the employee falls within ICTA88 Part V Chapter II, see EIM21620.