Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 201: Employment-related benefits
801.This section derives from parts of sections 154 and 168(3) of ICTA.
802.Subsections (1) and (2) derive from section 154(1) of ICTA and introduce the labels “employment-related benefit” and “excluded benefit”.
803.Subsection (3) derives from section 168(3) of ICTA.
804.Subsections (4) and (5) make it explicit that if the employment is held at some time in the tax year it is immaterial whether or not the employment is held at the time the benefit is provided. Subsection (4) further clarifies this proposition by stating that references to an employee may therefore include a former or a prospective employee. These provisions derive from and clarify the meaning of the words “where in any year a person is employed” in section 154(1) of ICTA. This change in approach is explained more fully in Note 14 in Annex 2.