Income Tax (Earnings and Pensions) Act 2003 section 103

Method of calculating cash equivalent

Section 103 explains how to determine which method applies when calculating the cash equivalent of the taxable benefit of employer-provided living accommodation.

• The calculation method depends on whether the cost of providing the accommodation is above or below £75,000
• If the cost is £75,000 or less, the cash equivalent is calculated under section 105; if it exceeds £75,000, section 106 applies instead
• Section 104 sets out the general rule for working out the cost of providing the accommodation, which determines which calculation method to use
• Key terms used throughout the living accommodation chapter — including "annual value", "person involved in providing accommodation", "the property", and "the taxable period" — are defined in sections 110 to 113 and section 102