A tax charge potentially arises where living accommodation is provided for an employee by reason of his employment (ITEPA 2003, s. 97). There can also be a charge if the accommodation is provided for a member of the employee’s family or household. This legislation generally takes priority over any other possible tax charge in respect of living accommodation (ITEPA 2003, s. 109, but see ¶414-575 for a discussion of whether any tax charge arises under these rules or under other provisions). The tax treatment of living accommodation is one of the more complex benefits. The issues arising are considered below under the following headings:

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