SE13338 - Termination payments and benefits: example: Section 148 ICTA 1988: living accommodation after 6 April 1998: “cost of providing” accommodation is £75,000 or less

Section 596B(2) ICTA 1988

This instruction deals with the situation where the “cost of providing the accommodation” has been calculated at £75,000 or less under SE13330.

The “cash equivalent” of the benefit is the greater of:

  • the “annual value” (see below) of the accommodation provided, and
  • the rent paid by the person providing it

less

  • any sum made good by the recipient of the benefit to the provider of the accommodation (usually rent)

For details of the meaning of “annual value” see SE11432 onwards (it is the same as for Section 145(2) ICTA 1988 purposes).