Section 206(3) ITEPA 2003

Where employment related benefits that are taxable as general benefits under Chapter 10 of Part 3 of ITEPA are provided to employees under an optional remuneration agreement, the normal method of working out the cash equivalent for those benefits does not apply. The relevant amount to treat as earnings from the employment for that tax year is the greater of:

the cost of the benefit, and

the amount foregone with respect to the benefit

This includes situations where an asset is transferred to an employee after having been provided for the employee's use as an employment-related benefit.

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