ACCA Advanced Taxation (ATX) Practice Exam

Is council tax charged for job-related accommodation?

1. Yes, there is a charge

2. No, there is no charge

3. Only for certain types of accommodation

4. Depends on the council

The correct answer is: No, there is no charge

In the context of job-related accommodation, council tax typically does not apply, particularly for properties that are provided solely for the purpose of employment. This is because employees living in such accommodations are often considered to be living in property that is supplied for the convenience of their job, which may fall under certain exemptions or reductions regarding council tax liability. There are specific rules governing council tax exemptions for job-related accommodation, which can depend on the nature of the employment and the type of accommodation provided. For example, accommodation provided to employees of charities or those required to live on site may not incur council tax charges. While different councils may have slightly varying practices and policies regarding council tax, the general rule is that job-related accommodations are exempt from council tax, which aligns with the idea that these residences serve a specific job-related purpose. This understanding provides the basis for concluding that job-related accommodation does not incur a council tax charge, thereby making the chosen answer accurate.