Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 81: Benefit of cash voucher treated as earnings
312.This section provides the means of charging the benefit of the voucher to income tax. It derives from section 143(1) of ICTA.
313.Subsection (1) treats the cash equivalent of that benefit as earnings from the employment. Amounts treated as earnings under this Chapter are employment income charged under Part 2 of this Act. They are earnings for the tax year in which the voucher is received – see Note 7 in Annex 2. For the purposes of Chapters 4 and 5 of Part 2 they are treated as received in that year – see sections 19(2) and 32(2) of this Act.
314.Subsection (2) defines “cash equivalent” as the sum of money for which the voucher may be exchanged.