EIM21002 – The benefits code: what is meant by a “benefit”

Section 201 ITEPA 2003

Section 201(1) ITEPA 2003 concerns “employment-related benefits”.

A benefit is defined in Section 201(2) as “ a benefit or facility of any kind”. When a benefit is provided to an employee (or to any member of his family or household (Section 721(5) ITEPA 2003) by reason of the employment ( EIM20501), it is an “employment-related benefit” (Section 201(2)).

The definition of what is a benefit is thus very wide and includes everything that confers a special bounty of any description on the recipient.

However, something (other than a loan where special provisions apply, see EIM26101 and EIM26111) which is a "fair bargain" ( EIM21004) between the employer and the employee is not a "benefit".

For benefits specifically exempted from charge see EIM21240.