Living Accommodation – Changes to the Tax Treatment for Employees and Retired Employees

Susan Ball and Lee Knight consider the benefit in kind treatment where an employer provides its staff, or their family or household, with living accommodation, both in respect of the living accommodation itself and the associated benefits (such as utilities, furniture, and other services paid...

There are two significant recent developments that impact these individuals:

1. The change to the rules, from April 2021, whereby the ‘representative occupier’ (RO) concession has been removed, such that some employees will become taxable on accommodation benefits going forward.

2. The clarification from HMRC that the employer-financed retirement benefits scheme (EFRBS) regulations (SI 2007/3537) only extend to the statutory exemptions under s99 ITEPA 2003 for accommodation available by reason of employment to retirees (subject to certain conditions being met) did not and does not include those covered by the RO concession and has not since 2006.

What is the representative occupier concession?