SELECCIÓN DE MACRO-PROCESOS HSEQ Y GESTIÓN DE MEJORA

Employment-related benefits.

37.(1) This Chapter applies to employment-related benefits. (2) In this Chapter–

“benefit” means a benefit or facility of any kind;

“employment-related benefit” means a benefit, other than an excluded benefit, which is provided in a tax year–

(a) for an employee, or

(b) for a member of an employee’s family or household, by reason of the employment.

For the definition of “excluded benefit” see paragraph 38.

(3) A benefit provided by an employer is to be regarded as provided by reason of the employment unless–

(b) the provision is made in the normal course of the employer’s domestic, family or personal relationships.

(4) For the purpose of this Chapter it does not matter whether the employment is held at the time when the benefit is provided so long as it is held at some point in the tax year in which the benefit is provided.

(5) References in this Chapter to an employee accordingly include a prospective or former employee.

Excluded benefits.

38.(1) A benefit is an “excluded benefit” for the purposes of this Chapter if–

(a) any of the Chapters of this Schedule other than this Chapter applies to the benefit, or

(b) any of those Chapters would apply to the benefit but for an exception,

(2) In this paragraph “exception”, in relation to the application of a Chapter of this Schedule to a benefit, means any enactment in a Chapter which provides that the Chapter does not apply to the benefit.

Reduction of cash equivalent where car is shared.

39.(1) This paragraph applies if in a tax year a car–

(a) is available to more than one employee concurrently, (b) is so made available by the same employer, and

(c) is available concurrently for each employee’s private use, and two or more of those employees are chargeable to tax in respect of the car in that year by virtue of paragraph 25.

(2) The cash equivalent of the benefit of the car to each of those employees for that year–

(a) is to be calculated separately under paragraph 26, and (b) is then to be reduced on a just and reasonable basis.

(3) If the employment of any of the employees mentioned in subparagraph (1)(a) is an excluded employment, the availability of the car to that employee is to be disregarded for the purposes of subparagraph (2)(b). (4) In this paragraph the reference to the car being available for each employee’s private use includes a reference to the car being available for the private use of a member of the employee’s family or household.

Cash equivalent of benefit treated as earnings.

40.(1) The cash equivalent of an employment-related benefit is to be treated as earnings from the employment for the tax year in which it is provided. (2) The cash equivalent of an employment-related benefit is the cost of the benefit less any part of that cost made good by the employee to the persons providing the benefit.

(3) The cost of an employment-related benefit is determined in accordance with paragraph 41 unless–

(a) paragraph 42 provides that the cost is to be determined in accordance with that paragraph, or

(b) paragraph 43 provides that the cost is to be determined in accordance with that paragraph.

Determination of the cost of the benefit Cost of the benefit; basic rule.

41. The cost of an employment-related benefit is the expense incurred in or in connection with provision of the benefit (including a proper portion of any expense relating partly to provision of the benefit and partly to other matters).

Cost of the benefit; asset made available without transfer.

42.(1) The cost of an employment-related benefit (“the taxable benefit”) is determined in accordance with this paragraph if–

(a) the benefit consists in–

(i) an asset being placed at the disposal of the employee, or at the disposal of a member of the employee’s family or household, for the employee’s or member’s use, or

(ii) an asset being used wholly or partly for the purpose of the employee or a member of the employee’s family or household, and

(b) there is no transfer of the property in the asset. (2) The cost of the taxable benefit is the higher of–

(a) the annual value of the use of the asset, and

(b) the annual amount of the sums, if any, paid by those providing the benefit by way of rent or hire charge for the asset,

together with the amount of any additional expense.

(3) For the purposes of subparagraph (2), the annual value of the use of an asset is–

(a) in the case of land, its annual rental value;

(b) in any other case, 20% of the market value of the asset at the time when those providing for taxable benefit first applied the asset in the provision of an employment-related benefit (whether or not the person provided with that benefit is also the person provided with the taxable benefit).

(4) In this paragraph “additional expense” means the expense incurred in or in connection with provision of the taxable benefit (including a proper proportion of any expense relating partly to provision of the benefit and partly to other matters) other than–

(a) the expense of acquiring or producing the asset incurred by the person to whom the asset belongs, and

(b) any rent or hire charge payable for the asset by those providing the asset.

Cost of the benefit; transfer of used or depreciated asset.

43.(1) The cost of an employment-related benefit is determined in accordance with this paragraph if–

(a) the benefit consists in the transfer of an asset, and

(b) the asset has been used, or has depreciated, since the person transferring the asset (“the transferor”) acquired or produced it.