Holiday homes | Tax Guidance | Tolley

Holiday homes


Produced by Tolley in association with
Employment Tax
Guidance

Holiday homes


Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Introduction

This guidance note covers both UK holiday homes and those abroad. The benefit of accommodation generally and the calculation of the taxable value are outlined in the Living accommodation guidance note.

For the provision of holidays please refer to the Holidays 鈥� provided or paid for guidance note.

Meaning of provided in relation to holiday homes

Unlike with day-to-day accommodation, the meaning of 鈥榩rovided鈥� in ITEPA 2003, s 102 requires little consideration because it is clear for how long the accommodation is provided to the employee; the term requires more consideration in relation to holiday homes. HMRC is likely to pay particular interest to small or family-owned businesses which are acquiring properties for the use of a very small number of individuals. There are two key questions:

  1. 鈥�

    who can use the accommodation?

  2. 鈥�

    why does the employer own or rent the accommodation?

The reason this becomes more relevant is that HMRC may seek to tax an individual on the basis of when the property is available for use.

Employer buys flat and employee lives

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+鈩�
TAKE A FREE TRIAL NOW
Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company

Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties. 聽 Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

Powered by
  • 14 Sep 2022 09:48

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Employment Tax

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more
Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner鈥檚 employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more Read more
tag-icon Brexit