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CW 16C: Time periods for certain accommodation expenditure
or “ Rules for tax-free accommodation during temporary work assignments ”
You could also call this:

“Tax rules for work-related overnight accommodation”

If you have to go to a work-related meeting, conference, or training course that requires you to stay overnight, this law applies to you. Your work duties must require you to attend, and the time you spend there must be considered a period of continuous work.

Your employer might provide a place for you to stay, pay for your accommodation, or cover the cost of your travel-related accommodation. If they do any of these things, the value of what they provide or spend is not counted as part of your income - it’s exempt.

However, if your job contract says you could get more money instead of having your accommodation paid for, and you choose to have the accommodation, then this law doesn’t apply.

A period of continuous work can include times when you need to stay overnight somewhere that’s close to where you usually work.

This law is part of the Income Tax Act 2007 and helps explain how accommodation costs for work trips are treated for tax purposes.

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Next up: CW 16E: Accommodation expenditure: new employees

or “Tax-free accommodation for new employees in special work situations”
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Part C Income
Exempt income

CW 16DAccommodation expenditure: conferences and overnight stays

  1. This section applies when—

  2. the employment duties of an employee require them to attend a work-related meeting, conference, or training course that entails an overnight stay; and
    1. the period for which the employee's attendance is required is a period of continuous work; and
      1. their employer—
        1. provides accommodation for the employee for the period of their attendance:
          1. incurs expenditure on the employee's accommodation for the period of their attendance:
            1. incurs expenditure on the employee's accommodation for necessary travel in connection with the performance of their duties for the period of their attendance.

            2. This section does not apply to an amount that is the value provided or expenditure incurred by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount.

            3. The amount that is the value provided or expenditure incurred by the employer is exempt income of the employee.

            4. For the purposes of this section, a period of continuous work may include a period in which an employee's duties of employment require them to stay for 1 or more nights at a location that is not distant from their regular workplace.

            Notes
            • Section CW 16D: inserted, on (applying for the 2015–16 and later income years), by section 24(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).