Employers may provide living accommodation to their employees ‘by reason of their employment’. There is specific tax legislation that covers the provision of accommodation and the expenses associated with it. In certain circumstances, a statutory exemption from tax is available for particular employments.

This guidance note outlines the benefits in kind potentially taxable when living accommodation is provided to an employee, alongside potential exemptions which may apply. Other benefits, which are unlikely to be exempted, are outlined in the Utilities, council tax and other bills in accommodation and the Furniture in accommodation provided by employer guidance notes. An overview of the different benefits possibly taxable is also given in the Client factsheet ― employer provided accommodation ― how various payment elements are taxed as benefits in kind .