Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 154: Benefit of van treated as earnings
596.This section states the principle that the cash equivalent of the benefit arising from the provision of a van is treated as the employee’s earnings from the employment. The section reflects the approach in section 120 of this Act, the corresponding section for cars. The section derives from section 159AA(1) of ICTA. The rewrite of the source legislation has clarified the timing of the charge. See Note 7 in Annex 2. See also item A of Change 2 in Annex 1 in relation to when the earnings are treated as received.