Section 316 | Accommodation, supplies and services used in employment duties

(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.