Pub landlords and tax treatment of accomodation in limited company

julesparnell

Hi all

Hopefully someone can help.

A client who are directors rent and reside in the flat above the pub. I have received confirmation from the brewery that is it not a requirement of the lease that they live there but someone has too.

As they are directors, is the rent for the flat, rates, heating etc classed as a Benefit in kind if the company pays on their behalf?

davealucas

@julesparnell In short, yes. You can find the guidance on HMRC website as follows:
https://www.gov.uk/guidance/taxable-benefits-and-facilities-480-chapter-4#particular-benefits-to-which-special-taxing-rules-apply
Paragraph 4.3 explicitly mentions accommodation including light, heat, rates and domestic or other services.

julesparnell

Thank you Dave that is very helpful.