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Living accommodation

08 November 2006
Issue: 4083 / Categories: Forum & Feedback

Our clients, Mr and Mrs B, own a substantial property in Devon, which they started to rent out as furnished holiday accommodation with effect from March 2006.
During the current tax year, they have employed four people to assist in running the letting business: D, the butler and letting manager; M, the chef and assistant manager; B, the gardener; and Z, who cleans and prepares the bedrooms, dining room, etc.

Our clients Mr and Mrs B own a substantial property in Devon which they started to rent out as furnished holiday accommodation with effect from March 2006.
During the current tax year they have employed four people to assist in running the letting business: D the butler and letting manager; M the chef and assistant manager; B the gardener; and Z who cleans and prepares the bedrooms dining room etc.
All four are provided with living accommodation on the premises. On the face of it there is a benefit arising to the employees for the provision of living accommodation. They do not appear to qualify for the 'necessary for proper performance of the duties' exemption so it would seem that the only chance of exemption would be if the 'customary and better performance' test is satisfied.
Do...

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