The cost of space is becoming an increasingly significant component of the total expenditure of most organisations. Gradually, cost‐conscious firms are re‐assessing their policy as to where the liability for the premises costs lands up in the books. Whether the space is a formal inter‐company charge or a notional charge to departmental budgets the principle is much the same — do you want to charge separate users for the space they occupy and, if so, how do you go about assessing the amount?