FA 1998 introduced new rules for taxing non-cash benefits under
Section 401 ITEPA 2003 (then Section 148 ICTA 1988) where they are
received on or after 6 April 1998 (see SE13040 for details).
But such benefits are not chargeable under Section 401 ITEPA
2003 if the benefit, or the right to receive the benefit, has
already been brought into charge.
For example, a termination settlement made on 6 April 1997
includes the promise to provide the ex-employee with a car for 2
years from that date. Following the rules in SE13255, the value of
this promise is agreed at £9,000. This sum is assessed for
1997/98 (the year in which the termination took place, see
SE13100).
Because the right to receive this benefit has already been
brought into charge, the
actual use of the car for the period on or after 6
April 1998 cannot be further charged under Section 401 ITEPA
2003.
