Where accommodation provided by the employer is living
accommodation there is a possibility of it being included twice in
employment income: once as earnings within Section 62 ITEPA 2003
and again as a benefit under Section 102 ITEPA 2003 (see
EIM11401 onwards). This would be unfair
and it is prevented by Section 109 ITEPA 2003.
In any case where the accommodation is included twice in employment income and you have these two full charges Section 109 tells you to:
The amount of employment income chargeable under Section 6 ITEPA 2003 is the total of the cash equivalent of the benefit under Section 103 plus the excess calculated above.