The University owns a property on our Colchester campus known as Lake House. This property was constructed at the same time the University was being established, for the specific purpose of enabling the Vice-Chancellor to be resident on campus. It is a condition of contract of the Vice-Chancellor that he must reside in this property and that it is the Vice-Chancellor’s primary residence during their period of office. The Vice-Chancellor is not required to make rental payments for the property but the monthly rental value is pensionable. HMRC’s position on the tax liability for accommodation for Vice-Chancellors has changed, compared to the point at which the contractual requirement was made for the VC to live in Lake House. A personal tax liability for the accommodation therefore applies from 6 April 2021 and as a consequence, the Vice-Chancellor receives a non-pensionable accommodation allowance with effect from 6 April 2021. The accommodation allowance is calculated based on the additional tax liability incurred from the Vice-Chancellor’s residence in Lakeside House, including an amount reflecting the additional PAYE deductions the University are required to make on payment of the accommodation allowance itself. Both the additional taxable benefits and the accommodation allowance will be reported in the University of Essex’s Financial Statements as part of the Vice-Chancellor’s total remuneration in line with the relevant guidance from the Office for Students at the time.
The Vice-Chancellor makes use of this house to host events for University staff and students and for external stakeholders with an interest in, or supporting, the work of the University. The events held in the Lake House 2023-24 (.pdf), hosted by the Vice-Chancellor sets out the purpose of each event held. This is updated on 31 July each year. Catering and service is provided by Wivenhoe House Hotel and the Edge Hotel School, both based at the University.
The University bears the costs of maintenance and upkeep of the property. All major works need to be approved by the Registrar and Secretary. The cost of cleaning is shared equally between the University and the Vice-Chancellor. Power and gas supply are apportioned between the Vice-Chancellor and University. This is declared to Her Majesty’s Revenue and Customs and reported annually on the P11D form through the Vice-Chancellor’s annual self assessment.