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| 17A.4.6.1 Subsidiary Rules |
Where the accommodation is provided for part of the year, but the employment is for a longer (or shorter) period, the percentage is applied to the emoluments attributable to the period of occupation. Any sums made good by the employee are deducted from the 10% cap. The 10% limit does not apply where the director has a stake of more than 5% or is a part-time director of a profit-seeking concern (because such a person is not exempt from part 5 anyway cannot come within the exemption from section 145(4) in any case). |
The 10% limit does not apply where the ancillary services are other than those listed; liability in respect of such services is without limit. The specific exception of structural repairs is presumably because the Revenue accepts the view expressed in Luke v IRC181 that these are part of the cost of acquiring or producing the asset under section 156(5)(b).182 Costs to the owner as owner, such as insurance and few duty, are presumably part of the cost of providing the living accommodation and so fall within section 145.183 |
17A.4.7 Tax Paid by Employer |
If an employer fails to deduct tax from a director’s emoluments under PAYE, but that tax is accounted for to the Revenue by someone other than the director, a chargeable benefit arises equal to the tax accounted for.184 The benefit is reduced by the amount of any reimbursement made by the director. An amount accounted for after the employment ends is treated as a benefit of the last year of assessment in which the director was employed by the company, unless it was accounted for after the director’s death.185 The provision applies only to directors and then only if they have no material interest in the company (ie not more than 5% interest) and they are full-time working |