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Where the cost of provision (see E4.610) of the living accommodation is greater than £75,000, the cash equivalent is calculated as follows.

Step 1

Calculate the amount that would be the cash equivalent if the provisions described in E4.610A applied.

Step 2

Calculate the following amount ('the additional yearly rent'):

where:

1. Ìý

   ÌýÌýÌýÌý ORI is the official rate of interest (as in T6.132), normally used for the purposes of calculating the benefit of a cheap loan provided by the employer¹, as at 6 April in the tax year in question, and

2. Ìý

   ÌýÌýÌýÌý C is the cost of providing the accommodation calculated:

3. 1. Ìý

      •ÌýÌýÌýÌý in accordance with the normal rule for calculating the cost of providing accommodation (see E4.610), or

   2. Ìý

      •ÌýÌýÌýÌý in a case where the special rule for calculating the cost of providing accommodation (see below) applies, in accordance with that rule instead

Step 3

Calculate the rent which would have been payable for the taxable period (see E4.610)