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Where Taxpayers and Advisers Meet

Accommodation BIK - assured short tenancy

Joined:Wed Aug 08, 2018 11:06 pm
Accommodation BIK - assured short tenancy

Postby AngryVATman » Wed Mar 24, 2021 10:22 pm

Individual rents a property for £500 per month from a company under an assured shorthold tenancy. The company itself rents the property for £1,000 from a third party - bit of a backstory to this, essentially it was exempt accommodation provided to an employee, but he passed away and his widow wished to remain in the property.

If she later becomes an employee, do the living accommodation BIK rules come into play? The property has clearly not been provided by reason of employment, however it appears Section 97 of ITEPA deems any accommodation provided to an employee to be 'by reason of employment' unless it is for domestic/family/personal reasons.

Joined:Sat Feb 01, 2014 3:26 pm

Re: Accommodation BIK - assured short tenancy

Postby bd6759 » Thu Mar 25, 2021 12:24 am

97 is quite specific that the property will be provided by reason of the employment.

The exclusions only apply if the employer is an individual, both by statute and because a company does not have family and can’t have domestic or personal reasons.

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