EIM11429 - Living accommodation: cost of providing living accommodation
Section 104 ITEPA 2003
You need to know the cost of providing accommodation in order to
decide which method to use to calculate the amount of the benefit
(see
EIM11428).
The cost of providing accommodation is A plus I minus P
where:
- A is the amount spent by a person involved in providing the living accommodation in acquiring it (in the case of a house etc this will be the cost of the freehold or leasehold interest)
- I is the amount spent by a person involved in providing the living accommodation on improving it prior to the tax year
- P is any amount the employee pays to the person involved in providing the accommodation:
- to reimburse either A or I, or
- for the grant of a tenancy.
For further information on the meaning of a person involved in
providing the accommodation and what constitutes improvements see
EIM11430. For an example see
EIM11481.
In a case where the market value basis applies, the cost of
providing living accommodation for the purposes of calculating the
benefit is different (see
EIM11477).
