Section 62(3) ITEPA 2003

An employee may benefit from their employment by receiving a benefit that does not take the form of money. Such profits are often called benefits in kind.

Some benefits in kind count as earnings within section 62 ITEPA 2003. Others may be treated as earnings under the benefits code. In most cases, the benefits code only applies to benefits that are not otherwise chargeable to tax. So, if a benefit is fully taxable as earnings under section 62 (because it represents money's worth – see below), the benefits code will not apply.

Exceptions from the general rule

There are 4 provisions in the benefits code that take priority over section 62. They are:

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