There are special rules for the provision of living accommodation to employees under certain circumstances. In most cases, employees will pay tax on any living accommodation provided by an employer unless they qualify for an exception. However, where an employee qualifies for an exception, there is no tax to pay on the provision of living accommodation. The definition of living accommodation includes houses, flats, houseboats, holiday homes and apartments. It does not include hotel rooms or board and lodgings.
An exception for living accommodation will generally apply in cases where:
HMRC publishes a list of some of the main occupations that typically provide living accommodation. This includes: agricultural workers living on farms or estates, pub and off-license managers living on premises, police officers and prison governors.
Employees provided with living accommodation can also be provided with other related benefits such as: