Section 316ZA | Accommodation, supplies and services used in employment duties: payment or reimbursement of expenses ^F1

(1)No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee on behalf of the employer in respect of the provision for the employee of accommodation, supplies or services if conditions A and B are met.

(2)Condition A is that, at the time the accommodation, supplies or services are first provided, the intention of the employer is that—

(a)they will be used by the employee in performing duties of the employment, and

(b)any use of them for private purposes by the employee or members of the employee’s family or household will not be significant.

(3)Condition B is that where the provision is otherwise than on premises occupied by the employer—

(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.

(4)In this section “for private purposes” and “excluded benefit” have the same meaning as in section 316.