472. Expenses.

Where a close company1 incurs expense2 in or in connection with the provision for any participator3 of living or other accommodation, of entertainment, of domestic or other services, or of other benefits or facilities of any kind, the company is treated as making a distribution4 to him of an amount equal to so much of that expense as is not made good to the company5 by the participator6.

This does not, however, apply:

  1.  

    (1)     to expenses incurred in or in connection with the provision:

    1.  

      (a)     for a person employed in specified employment7 of specified benefits in kind8;

    2.  

      (b)     of living