# Income Tax (Earnings and Pensions) Act 2003, Section 104: General rule for calculating cost of providing accommodation


For any tax year the cost of providing living accommodation is given by the formula—
A+1-Pwhere—
A is any expenditure incurred in acquiring the estate or interest in the property held by a person involved in providing the accommodation,
I is any expenditure incurred on improvements to the property which has been incurred before the tax year in question by a person involved in providing the accommodation, and
P is so much of any payment or payments made by the employee to a person involved in providing the accommodation as represents—
(a) reimbursement of A or I, or
(b) consideration for the grant to the employee of a tenancy or sub-tenancy of the property.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/section/104 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-104
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.