Commentary on Sections Overview Overview Section 41: Timing and amount of certain qualifying benefits
185.This section sets out:
	when benefits in the form of money are treated as provided; and
	how to calculate the value of benefits provided by the transfer of an asset.
186.It is based on paragraphs 2 and 5 of Schedule 24 to FA 2003.
187.Section 245(4) of FA 2004 provides (with effect from 6 April 2006) that these rules do not apply to payments under an “employer-financed retirement benefits scheme”.
188.Subsection (2) describes how to calculate the value of a qualifying benefit provided by the transfer of an asset. The amount of the benefit is the expenditure incurred on the asset by the third party including both the cost of acquiring the asset and any subsequent expenditure. If the asset was acquired by the employer and transferred to the third party the amount of the benefit is the trading deduction that would otherwise have been allowed to the employer plus any subsequent expenditure incurred by the third party.
189.Subsection (3) sets out an exception to the general rule in subsection (2). If the employment income charge is lower than the charge calculated in accordance with subsection (2) the value of the benefit is restricted to the lower amount.