Following a meeting with consultation officials, CTG recently submitted its response to the Government’s Call for Evidence on the current tax treatment of employer provided living accommodation. This will inform decisions about whether and how to simplify this area and follows two reports by the Office of Tax Simplification covering their review of employee benefits and expenses. The report found that:

• there was a lack of clarity about what constitutes living accommodation, and when and how the exemptions apply
• the exemptions are outdated: newer professions are not represented while it is hard to see why exemptions for some occupations still exist
• as well as being outdated the exemptions appear arbitrary and can result in different tax treatment for employees in very similar jobs which creates complexity and unfairness.

The current exemptions are very important for a number of charities including churches, universities, heritage charities and independent schools and it is important that we can demonstrate their ongoing importance and value.