Part 3 Chapter 10 ITEPA 2003 contains the rules for general
benefits; the benefits in the benefits code (
EIM20006) that do not fall within
separate rules in Part 3 Chapters 4 to 9 ITEPA 2003.
Chapter 10 is introduced by Section 201(1) ITEPA 2003, which
states that the Chapter applies to “employment-related
benefits”, defined in Section 201(2) as benefits provided for
an employee (or for members of his family or household) by reason
of the employment (
EIM21002).
“Benefit” means a benefit or facility of any kind
(
EIM21002).
The amount of a benefit which is chargeable as earnings is
the “cash equivalent” of the benefit (Section 203(1)
ITEPA 2003). The rules for calculating the cash equivalent vary
according to the nature of the benefit but generally it is the cost
to the person who provides the benefit, less any amount made good
by the employee (Section 203(2)).
In other cases the cash equivalent may be a scale charge (for
example a car benefit) or some other amount.
To determine the amount of the cash equivalent in each case
you need to look up the instructions relating to the particular
benefit you are considering. See
EIM21600 for a detailed index of some
particular benefits and
EIM20000 for an overall index of how the
charge on benefits generally applies.
