(ii) State, with reasons, whether Messier Ltd can provide Galileo with accommodation in th

Question

(ii) State, with reasons, whether Messier Ltd can provide Galileo with accommodation in the UK without

giving rise to a UK income tax liability. (2 marks)

Answer 1

正确答案：
(ii) Tax-free accommodation
It is not possible for Messier Ltd to provide Galileo with tax-free accommodation. The provision of accommodation by an
employer to an employee will give rise to a taxable benefit unless it is:
– necessary for the proper performance of the employee’s duties, e.g. a caretaker; or
– for the better performance of the employee’s duties and customary, e.g. a hotel manager; or
– part of arrangements arising out of threats to the employee’s security, e.g. a government minister.
As a manager of Messier Ltd Galileo is unable to satisfy any of the above conditions.