EIM11431 - Living accommodation: property costing £75,000 or less: measure of benefit under Section 105 ITEPA 2003
Section 105(2) ITEPA 2003
The amount of the benefit depends on the cost of the property
(see
EIM11428).
This page summarises the cash equivalent of the benefit where
the living accommodation cost the provider £75,000 or less.
The amount of earnings under Section 105 ITEPA 2003 is:
- the greater of
- the annual value for the taxable period of the accommodation provided and
- the rent paid for the taxable period by the person providing it
less
- any rent paid for it for the taxable period by the employee.
For the meaning of annual value see
EIM11432.
For the meaning of taxable period see
EIM11428.
For what cost to the provider means see
EIM11429.
For an example of how the benefit is calculated under Section
105 see example
EIM11442.
Where the living accommodation cost the provider more than
£75,000 the cash equivalent of the benefit is calculated under
Section 106 ITEPA 2003 (see
EIM11480). Remember the possibility of a
further benefit on the provision of accommodation services such as
heat and light (see
EIM11521).
