Part 6

Employment income: income which is not earnings or share-related
Chapter 2

Benefits from employer-financed retirement benefits

Valuation of benefits etc.

Valuation of benefits
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1
In the case of a cash benefit, for the purposes of this Chapter the amount of a benefit is taken to be the amount received.
2
In the case of a non-cash benefit, for the purposes of this Chapter the amount of a benefit is taken to be the greater of—
a
the amount of earnings (as defined in Chapter 1 of Part 3) that the benefit would give rise to if it were received for performance of the duties of an employment (money’s worth), and
b
the cash equivalent of the benefit under the benefits code if it were so received and the code applied to it.
3
For the purposes of subsection (2) the benefits code has effect with the modifications in subsections (4) to (6).
4
References in the benefits code to the employee are to be taken as references to the person by whom the benefit is received.
5
References in the benefits code to the employer are to be taken as including references to the former employer.
6
Where—
a
section 106 (cash equivalent: cost of accommodation over £75,000) applies, and
b
the amount referred to in section 105(2)(b) (the sum made good) exceeds the amount referred to in section 105(2)(a) (the rental value),
the amount to be subtracted under paragraph (b) of step 4 of the calculation in section 106(2) is that excess (and not only the excess rent referred to there).
Words in Pt. 6 Ch. 2 heading substituted (6.4.2006) by Finance Act 2004 (c. 12), ss. 249(2), 284(1) (with Sch. 36)