Income Tax (Earnings and Pensions) Act 2003 section 99

Accommodation provided for performance of duties

Section 99 sets out two exemptions from the tax charge on employer-provided living accommodation and imposes additional conditions where the employee is a company director.

• Living accommodation is exempt from the benefit-in-kind charge where it is necessary for the proper performance of the employee's duties that the employee resides in it
• An exemption also applies where the accommodation is provided for the better performance of the employee's duties and it is customary in that type of employment for employers to provide living accommodation
• Where a company provides the accommodation and the employee is a director of that company or an associated company, the exemptions only apply if the director has no material interest in the company and is either a full-time working director or the company is non-profit-making or charitable
• Where these exemptions or the exemption under section 98 apply, further exemptions relating to associated costs may also be available under sections 314 and 315