Home Exclusion and Tax Equalization

Under Negotiation:  Example

My company is offering to pay for my UK housing and will deduct $1000 from my paycheck as a way to keep me consistent with what I would have paid in the US.

I do not want to live in the location near my office and would rather live closer to London (30 min train ride).  If I was to negotiate an allowance and pay for the difference myself, assuming my company doesn't want to pay for housing in London, am I eligble for the Housing Exclusion?

My company will be doing tax equalization.  I am not sure if I take the equalization, if my housing allowance will be considered as part of my hypothetical tax or not.  If it is part of my hypothetical tax, I would hope I could use the housing exclusion.

What do you guys think?  I don't meet my HR until next week.

Hiya,

I'd say speak to a qualified Tax accountant to determine how you'd stand in the taxation part.

I'd then say talk with your company and see what they say about where you want to live and paying the difference.

Cheers, DtM! West London & Slough UK!