Living accommodation benefit

In this lesson

1. 0:00 Living accommodation benefit overview
2. 1:03 Employer-owned accommodation and additional charges
3. 2:18 Six-year rule and market value application
4. 3:02 Prorating benefits and living expenses
5. 4:01 Worked example: Moe's accommodation benefit
6. 5:08 Worked example: Dolly's market value calculation
7. 6:07 Worked example: Maggie's five-month benefit

About this lesson

Through worked examples, you'll master how to apply the annual value, handle the six-year rule for market value, prorate benefits for partial-year provision, and account for employee contributions and living expenses. The core calculation depends on ownership: if your employer rents the property, use the higher of rent paid or annual value; if they own it, use annual value plus an additional charge (cost minus £75,000 multiplied by the official rate of interest). A critical rule to remember is the six-year threshold—if the employer acquired the property more than six years before providing it to you, use market value at the date you moved in instead of original cost. You'll also learn how to handle partial-year benefits by prorating over 12 months and reducing the benefit by any contributions you make toward the accommodation.

Duration: 8m