Income Tax (Earnings and Pensions) Act 2003 section 108

Cash equivalent: accommodation provided for more than one employee

Section 108 deals with how the taxable benefit of employer-provided living accommodation is divided up when the same accommodation is shared by more than one employee at the same time.

• Where the same living accommodation is provided to more than one employee simultaneously, the total taxable benefit for all employees combined is capped at the amount that would apply if only one employee occupied it.
• Each employee's individual share of the taxable benefit must be a just and reasonable proportion of that capped total.
• This apportionment rule applies whether the shared occupation lasts for the whole tax year or only part of it.
• The provision originally derived from an extra-statutory concession (ESC A91A) and was given statutory effect by this section.