Section 316 — Income Tax (Earnings and Pensions) Act 2003: Accommodation, supplies and services used in employment duties

Accommodation, supplies and services used in employment duties 316 1 No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of the provision for an employee of accommodation, supplies or services used by the employee in performing duties of the employment if conditions A and B are met.

2 Condition A is that any use of the accommodation, supplies or services for private purposes by the employee or members of the employee’s family or household is not significant.

3 For this purpose, use “ for private purposes ” means—

a use that is not use in performing the duties of the employee’s employment, and b use that is at the same time both use in performing the duties of an employee’s employment and other use.

4 Condition B is that where the provision is otherwise than on premises occupied by the person making it—

a its sole purpose is to enable the employee to perform the duties of the employee’s employment, and b what is provided is not an excluded benefit.

5 The following are excluded benefits unless regulations under subsection (6) provide otherwise—

a a motor vehicle, boat or aircraft, and b a benefit that involves—

i the extension, conversion or alteration of living accommodation, or ii the construction, extension, conversion or alteration of a building or other structure on land adjacent to and enjoyed with such accommodation.

6 The Treasury may make provision by regulations as to what is an excluded benefit for the purposes of subsection (4)(b).

7 The regulations may provide that a benefit is an excluded benefit only if such conditions as may be prescribed are met as to the terms on which, and persons to whom, it is provided.