Remember under Section 99(2) ITEPA 2003 for this exemption it must be customary and for better performance to be tax exempt. This HMRC note may well therefore impact the position going forwards with regard to how any accommodation you provide is taxed and we would suggest you consider as soon as possible how this may affect the analysis you are currently working on around these areas.
It may be possible for some to rely on the representative occupier exemption. This exemption was given when the current legislation was enacted in 1977. Those who were defined as representative occupiers prior to April 1977 would continue to receive accommodation tax free provided that the circumstances were unchanged and the following conditions are met.
This exemption may apply those who succeed to the post where it was first regarded as carrying representative status, provided that the circumstances surrounding the provision of the accommodation had not changed and that the required conditions were met. You may wish to take the opportunity to consider whether your institution will be affected by the potential changes post April.
You may find this link helpful Employment Income Manual on GOV.UK website.
We can help you determine the impact. If you have immediate questions on the above please contact Caroline Harwood.