tom123
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Relocation expenses

Relocation expenses

If a new employee takes a rental property near to the new employer, and the employer re-imburses the rent for a short period (3 months), can this be treated as relocation expenses within the £8k limit?

The old residence is not within reasonable travelling distance.

Thanks

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30th Jan 2013 13:24

Is there a relocation?

What happened to his old residence? And is the rented property just temporary accommodation? Or is it the new residence that the employer temporarily paid the rent for.

If he sold/stopped renting a property in the previous location (property A), and bought/started renting a property in the new location (property B), then you have a relocation and any rent paid by the employer for temporary accommodation it's qualifying relocation expenditure if it's within the £8K (assuming the all other conditions are met).

If the employer paid the rent for property B for a short period though, it's not qualifying relocation expenditure, because property B isn't temporary accommodation

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By tom123
30th Jan 2013 14:12

Further info

Thanks George. The employee will be relocating. There is also a marriage separation, so the old property will be in use by the former partner etc. After the company period of reimbursement ends, the employee will continue as a tenant of the new house.

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30th Jan 2013 16:28

As I say...

... that's not then temporary living accommodation, so it doesn't fall within the exemption.

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