The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
This guidance note covers both UK holiday homes and those abroad. The benefit of accommodation generally and the calculation of the taxable value are outlined in the Living accommodation guidance note.
For the provision of holidays please refer to the Holidays ― provided or paid for guidance note.
Unlike with day-to-day accommodation, the meaning of ‘provided’ in ITEPA 2003, s 102 requires little consideration because it is clear for how long the accommodation is provided to the employee; the term requires more consideration in relation to holiday homes. HMRC is likely to pay particular interest to small or family-owned businesses which are acquiring properties for the use of a very small number of individuals. There are two key questions:
who can use the accommodation?
why does the employer own or rent the accommodation?
The reason this becomes more relevant is that HMRC may seek to tax an individual on the basis of when the property is available for use.
If a company buys a flat and an employee lives in it throughout the year, it is clear in this case that this is a taxable benefit for the whole year and the treatment is set out in the Living accommodation guidance note.
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