277. Cash equivalent of accommodation where cost is less than £75,000.

If the employee is taxable under the Income Tax (Earnings and Pensions) Act 2003 Part 3 Chapter 5 on employer-provided living accommodation1, provided that the value of the accommodation does not exceed £75,000, the cash equivalent is the rental value of the accommodation for that period, less any sum made good by the employee2. Generally, the cost of the accommodation is the purchase price plus improvements, less any amount paid by the employee as reimbursement for the improvements or as consideration for the tenancy3. Benefits in kind provided in return may be taken into account in calculating the amount