SE21721 - Benefits: heating, lighting, cleaning etc. expenses of job-related living accommodation: 10% limit

Section 163 ICTA 1988

Where a director or employee within Part V Chapter II ICTA 1988 is provided with job- related living accommodation by reason of his employment there is a limit to the amount of the charge on certain other benefits which he may also be provided with. The benefits are:

• heating, lighting and cleaning the premises
• repairs to the premises, their maintenance or decoration
• the provision of furniture and other equipment or effects which are normal for domestic occupation.

The limit applying to the total of all such benefits is:

• 10 per cent of the net amount of the emoluments ( SE21722) less
• any contribution made by the director or employee to the person incurring the expenditure.

The limit applies to expenditure incurred by the person providing the accommodation and/or expenditure reimbursed to the employee.

If the accommodation is provided for less than a year the 10 per cent limit of the net emoluments is reduced proportionately.

As regards which employees qualify as being provided with job- related living accommodation see SE11331 onwards.