Finance Bill 2020 - Relief on disposal of private residence

7 Dec 2020

The temporary income tax and National Insurance (NIC) exemption will ensure that no tax liability arises where employers reimburse employees‚ personal expenditure on home office equipment arising from arrangements to work from home during the COVID-19 outbreak.

To be eligible for the exemption the expenditure must meet the following two conditions:

That equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak, and The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer (under section 316 of ITEPA).