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Benefits Code II: Not Low Paid Employees |
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continues, any subsequent replacement loan will also be subject to these rules—unless it is itself under these rules regarded as having been obtained by reason of another employment.178 |
17A.4.5 Share Purchase Schemes: Deemed Loans |
These rules have been repealed by FA 2003 as part of the new rules on share options etc. The mischief at which these rules were aimed is now addressed by those provisions. |
17A.4.6 Living Accommodation: 10% Cap for Certain Ancillary Services in Certain Cases |
As we have seen, the provision of living accommodation is specifically excluded from ITEPA part 3 chapter 10 (TA 1988, section 154) and is governed by part 5 (section 145) (§15A.4 above). As we have also seen, the exception in sections 99(1) and (2) (145(4)) for the first two cases of non-beneficial occupation does not apply if the employee is a director of the company providing the accommodation, or of an associated company, unless (a) the employee has no material interest and (b) the employment is either as a full-time working director or the company is a charity or is non-profit making.179 These rules have to be recalled when considering section 315(163). |
The provision of certain ancillary services is different and does fall within chapter 10 (section 154). However, where the occupation is excluded by sections 99(1), (2) or 100, the taxable amount is subject to a cap. Sums in respect of (a) heating, lighting or cleaning the premises, (b) repairs (other than structural repairs)180 maintenance or decoration, and (c) the provision of furniture or other appurtenances or effects which are normal for domestic occupation, must not exceed 10% of the emoluments of the employment. For this purpose ‘emoluments’ include all benefits caught by chapter 10 (section 154) (other than the cost of these services notionally fixed at 10%—to avoid circularity) but subject to the deduction of expenses allowable under section 336(198). |