Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 120: Benefit of car treated as earnings
443.This section provides that the cash equivalent of the benefit arising from the provision of a car is treated as an employee’s earnings. The section derives from part of section 157(1) of ICTA.
444.Subsection (1) brings the cash equivalent of the car benefit into charge as part of the employee’s earnings. The rewrite of the source legislation has clarified the timing of the charge. See Note 7 in Annex 2.
445.Subsection (2) allows concise expression in this Chapter of the link between the employee and the taxable benefit.