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