BIM46820 - Specific deductions: rent and rates: property for employees
Where a trader provides residential premises for an employee, a deduction may be allowed for:
- any rent paid by the trader, and
- Council Tax, repairs and insurance.
A deduction will only be allowed to the extent that such expenses exceed any rent paid by the employee or any contribution required from the employee. Where rent paid by the employee exceeds the employer’s costs the profit is income from property in the hands of the employer (see BIM41000 onwards).
As regards the liability of the employee: