Section 104 — Income Tax (Earnings and Pensions) Act 2003: General rule for calculating cost of providing accommodation

General rule for calculating cost of providing accommodation 104 For any tax year the cost of providing living accommodation is given by the formula— A + 1 - P where— A is any expenditure incurred in acquiring the estate or interest in the property held by a person involved in providing the accommodation, I is any expenditure incurred on improvements to the property which has been incurred before the tax year in question by a person involved in providing the accommodation, and P is so much of any payment or payments made by the employee to a person involved in providing the accommodation as represents— (a) reimbursement of A or I, or (b) consideration for the grant to the employee of a tenancy or sub-tenancy of the property.