SE13280 - Termination payments and benefits: valuation of non-cash benefits received after 6 April 1998: usual application of "cash equivalent" for Section 148 ICTA 1988 purposes

Paragraph 12(1)(b) Schedule 11 and Section 596B ICTA 1988

SE13270 explained that in order to find the value of a non-cash benefit received on or after 6 April 1998, you normally calculate its “cash equivalent” following the definition in Section 596B ICTA 1988. That definition is:

• For living accommodation, the “cash equivalent” is defined in Section 596B(1)(b) and (2)-(10). See SE13330 for details.
• For all other benefits, the “cash equivalent” of the benefit is defined in Section 596B(1)(a) ICTA 1988. It is found by:

• first identifying where the type of benefit being provided is dealt with in Chapter II Part V ICTA 1988. For example, where the benefit provided is the use of a car, the rules in Section 157 ICTA 1988 (which are part of Chapter II Part V) are the “appropriate” ones to use because that Section deals with the benefit of cars made available for private use.
• then following the rules which establish what the “cash equivalent” for that benefit is in that Chapter. SE13300 below gives more details.

SE13310 lists various benefits and the relevant instructions for finding their Chapter II Part V “cash equivalents”.