Finance Act 2000

10 (1) The following provisions apply in relation to the calculation of the deemed Schedule E payment.

(2) A “payment or other benefit” includes anything that, if received by an employee for performing the duties of an employment within Schedule E—

(a) would be an emolument of the employment, or

(b) would be chargeable to tax as an emolument of the employment.

(3) The amount of a payment or other benefit is taken to be—

(a) in the case of a payment or cash benefit, the amount received, and

(b) in the case of a non-cash benefit, the cash equivalent of the benefit.

(4) The cash equivalent of a non-cash benefit is taken to be whichever is the greater of—

(a) the amount that would be chargeable to tax under section 19(1) of the Taxes Act 1988 if the benefit were an emolument chargeable to tax under Case I of Schedule E, and

(b) the cash equivalent determined in accordance with the rules in section 596B of that Act.

(5) A payment or benefit is treated as received—

(a) in the case of a payment or cash benefit, when payment is made of or on account of the payment or benefit;

(b) in the case of a non-cash benefit, when it it is used or enjoyed.