Income Tax (Earnings and Pensions) Act 2003 section 279

Disposal benefits and expenses

Section 279 sets out which benefits and expenses connected with the disposal of an employee's former residence may qualify for favourable tax treatment when the employee changes residence.

• The section applies where an employee (or their family or household members) has an interest in the former residence and it is being disposed of, or is intended to be disposed of, because of a change of residence.
• Qualifying benefits and expenses include legal fees, estate agent or auctioneer charges, advertising costs, utility disconnection costs, and early loan redemption penalties connected with the disposal.
• Further qualifying expenses cover rent, maintenance, insurance, and security costs for the former residence while it stands unoccupied pending disposal.
• A "related loan" covers any loan raised to acquire an interest in the former residence, any loan secured against such an interest, or a combination of both.