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
Replies (3)
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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
As I say...
... that's not then temporary living accommodation, so it doesn't fall within the exemption.