Part 3U.K.Employment income: earnings and benefits etc. treated as earnings

Chapter 4U.K.Taxable benefits: vouchers and credit-tokens

Benefit of cash voucher treated as earningsU.K.

81Benefit of cash voucher treated as earningsU.K.

(1)The cash equivalent of the benefit of a cash voucher to which this Chapter applies is to be treated as earnings from the employment for the tax year in which the voucher is received by the employee.

[F1(1A)Where a cash voucher to which this Chapter applies is provided pursuant to optional remuneration arrangements—

(a)subsection (1) does not apply, and

(b)the relevant amount is to be treated as earnings from the employment for the tax year in which the voucher is received by the employee.

(1B)In this section “the relevant amount” means—

(a)the cash equivalent, or

(b)if greater, the amount foregone with respect to the benefit of the voucher (see section 69B).]

(2)The cash equivalent is the sum of money for which the voucher is capable of being exchanged.

[F2(3)For the purposes of subsection (1B), assume that the cash equivalent is zero if the condition in subsection (4) is met.

(4)The condition is that the benefit of the voucher would be exempt from income tax but for section 228A (exclusion of certain exemptions).]