8 |
If the same benefit gives rise to a charge under the benefits code (amount B) and also under section 62 (amount A) then section 62 applies to the extent of amount A, leaving the benefits code to pick up the pieces by taxing the amount, if any by which B exceeds A.38 If the benefit could be converted into cash but only for less than its cost, section 64 makes it clear that the excess comes within chapter 10. If, however, the resale value is higher than cost, it appears that the Revenue can insist on tax on the balance of the higher amount under Tennant v Smith. Section 154 does not apply to income which is expressly excluded from tax by some other provision. |
17A.3.1.4 Provided by Reason of Employment |
Chapter 10 (like chapter 3—section 153) applies only where the benefit is provided ‘by reason of the employment’. However, as already seen, all provision for E, or for members of E’s family or household, by the employer, R, are treated as made by reason of the employment—unless it can be shown that R is an individual and that the provision was made in the normal course of R’s domestic, family or personal relationship.39 So if the family business is incorporated, the benefit of this rule is lost. |
A benefit is treated as provided by the employer if it is provided at his cost.40 In Wicks v Firth41 scholarships awarded by trustees were held to be provided at the cost of the employer since the trustees used money supplied by the employer and were only performing duties imposed on |