| Benefits Code I and Exemptions and Exclusions |
9 |
only be so if the conditions are genuine.20 In Heaton v Bell21 Lord Diplock went further and said that limitations on use arising from a contract collateral to the contract of employment into which the employee entered of his own volition would not escape tax.22 |
15A.2.3 Salary Sacrifice |
15A.2.3.1 The Principle23 |
A benefit can also be turned into money by being surrendered, or by not being accepted. In Heaton v Bell24 an employee was loaned a car by his employers and went on to what was called an amended wage basis. If the true effect had been that the employee took a lower wage and received the free use of a car, a majority of the House would have held that the employee was taxable in respect of the use of the car on the amount he would have received and he had surrendered that use.25 Such statements are obiter since the House preferred a different construction.26 |