Income Tax (Earnings and Pensions) Act 2003 section 100A

Homes outside UK owned through company etc.

Section 100A provides an exemption from the living accommodation benefit-in-kind charge for overseas properties held through a company, where the director or officer personally funds the arrangement and the company exists solely to hold the property.

• The normal rule treating company-provided living accommodation as taxable earnings does not apply to property outside the UK held through a company wholly owned by the director or officer (and possibly other individuals), provided no interest in the company is partnership property
• The company must have been the "holding company of the property" at all times since the relevant time, meaning its main or only asset is the property interest and its only activities are incidental to owning it (such as letting the property when not in personal use)
• The exemption also applies where the property is held through a wholly owned subsidiary, provided both the subsidiary and the parent company meet equivalent conditions regarding assets and activities
• The exemption is designed for individuals who use their own money to acquire overseas accommodation for personal or family use through a company structure, and does not extend to accommodation provided as part of an employment remuneration package