Part 4

Employment income: exemptions
CHAPTER 7A

Exemptions: amounts which would otherwise be deductible

Exemption for other benefits
289D
1
No liability to income tax arises by virtue of any provision of the benefits code in respect of an amount (“amount A”) treated as earnings of an employee as a result of the provision of a benefit if—
a
an amount equal to amount A would (ignoring this section) be allowed as a deduction from the employee's earnings under Chapter 3 of Part 5 in respect of the provision of the benefit, and
b
the benefit is not provided pursuant to relevant salary sacrifice arrangements.
2
“
Relevant salary sacrifice arrangements
”, in relation to an employee to whom a benefit is provided, means arrangements (whenever made, whether before or after the employment began) under which—
a
the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of the benefit, or
b
the amount of other general earnings or specific employment income received by the employee depends on the provision of the benefit.
Pt. 4 Ch. 7A inserted (with effect in accordance with s. 11(2) of the amending Act) by Finance Act 2015 (c. 11), s. 11(1)
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)