EIM11412 - Living accommodation: avoidance areas

Section 67(1) ITEPA 2003

The following list is of cases in which you may face argument that there is no provided living accommodation charge.

• Shadow director cases. In these cases the individual is neither an employee nor an actual director of the company that provides the individual with the use of living accommodation. It is still possible that a benefit arises under Part 3 Chapter 5 ITEPA 2003 on the individual if the individual is the one who pulls the strings of the company (see EIM11413).
• Co-ownership cases. In these cases the employee and employer co-own the living accommodation, usually as tenants in common through a trust (see EIM11414).
• Lease premium cases. These are cases where a large premium and small rent is paid by the employer to a third party for a short lease on living accommodation (see EIM11415).