SE21611 - Particular benefits: alterations, additions and repairs to living accommodation

Section 155(3) ICTA 1988

Where living accommodation is provided for a director or employee within Part V Chapter II ICTA 1988 (or for members of his family or household) by reason of his employment, no chargeable benefit arises in respect of:

• any structural alterations and additions to the premises or
• repairs expenditure which would normally be the landlord's responsibility.

For this purpose expenditure which would normally be the landlord's responsibility covers repairs of:

• the structure and outside of the property including drains, gutters, and external pipes etc
• installations in the property for the supply of water, gas and electricity
• sanitary installations including sinks, baths and toilets
• space and water heating installations.

This kind of repairs expenditure maintains or enhances the value of the property to the landlord rather than providing a benefit to the employee. That is why the expenditure is not charged as a benefit on the employee.

As regards the heating, lighting and cleaning etc of job-related living accommodation see SE21720 onwards.

Although the cost of structural alterations and additions is not charged as a separate benefit on the employee, it is taken into account in determining the cost of the property for the purpose of any charge on the benefit of provided living accommodation ( SE11301 onwards).