SCHEDULES
SCHEDULE 2Optional remuneration arrangements
Benefits in kind: amount treated as earnings
33
1
Section 148 (reduction of cash equivalent where car is shared) is amended as follows.
2
In subsection (1)—
a
in the words before paragraph (a), after “applies” insert “
for the purposes of sections 121 and 121B
”
;
b
in the words after paragraph (c), for “section 120” substitute “
sections 120 and 120A
”
.
3
For subsection (2) substitute—
2
The amount to be treated as earnings in respect of the benefit of the car is to be calculated separately for each of those employees for that tax year (whether under section 120 or section 120A).
4
In subsection (2A), at the beginning insert “
In the case of an employee chargeable to tax in respect of the car by virtue of section 120
”
.
5
After subsection (2A) insert—
2B
In the case of an employee chargeable to tax in respect of the car by virtue of section 120A, the modified cash equivalent (as determined under section 121B(1)) is to be reduced on a just and reasonable basis.