Section 316 of the Income Tax (Earnings and Pensions) Act 2003 provides that no liability to income tax arises where "accommodation, supplies and services" are provided to employees for the performance of their duties, provided that certain conditions are met. The exemption is based on the accommodation, supplies and services being supplied to the employee directly, as opposed to on a reimbursement basis.
Following the Treasury's announcement, a further exemption will apply in relation to home working office equipment purchased by the employee and reimbursed by the employer where:
The stated purpose of the measure is to ensure that employees and employers are able to effectively manage and facilitate their working from home arrangements as soon as possible.
The exemption is relevant in relation to equipment reimbursed from 16 March 2020 and is a temporary measure in force until the end of the tax year 2020-2021.