A commercial rent

I have a client company that operates a trade (a golf course) and also owns a number of buy-to-let properties that are commercially let.

The company is considering taking on an employee to work in the company’s trade.

The potential employee will have to relocate to the area and the directors of the company are considering whether to offer the employee one of the buy-to-let properties to live in.

The employee would be charged a normal commercial rent.

This is an arrangement which clearly would make commercial sense both to the trading part of the business as well as the rental part of the business.

I am satisfied that the accommodation will not be representative accommodation.

Notwithstanding the fact that the employee will be charged an open market rent I am concerned that a benefit in kind on living accommodation provided to an employee will apply.

Because of the...