Income and Corporation Taxes Act 1988

154 General charging provision. U.K.

M1 (1) Subject to section 163, where in any year a person is employed in [F1 employment to which this Chapter applies] and—

(a) by reason of his employment there is provided for him, or for others being members of his family or household, any benefit to which this section applies; and

(b) the cost of providing the benefit is not (apart from this section) chargeable to tax as his income,

there is to be treated as emoluments of the employment, and accordingly chargeable to income tax under Schedule E, an amount equal to whatever is the cash equivalent of the benefit.

(2) The benefits to which this section applies are accommodation (other than living accommodation), entertainment, domestic or other services, and other benefits and facilities of whatsoever nature (whether or not similar to any of those mentioned above in this subsection), excluding however—

(a) any benefit consisting of the right to receive, or the prospect of receiving, any sums which would be chargeable to tax under section 149; and

(b) any benefit chargeable under section 157, 158, [F2 159AA,][F3 159A,]160 or 162;

and subject to the exceptions provided for by [F4 sections 155 and 155A].

(3) For the purposes of this section and sections 155 and 156, the persons providing a benefit are those at whose cost the provision is made.

Textual Amendments

F1 1989 s.53(2)(b).Previously

“director's or higher-paid employment”.

F2 Words in s. 154(2)(b) inserted (with effect for the year 1993-94 and subsequent years of assessment) by 1993 c. 34, s. 73, Sch. 4 paras.2, 8

F3 Word in s. 154(2)(b) inserted by Finance Act 1991 (c. 31, SIF 63:1), s. 30(1)(3)

F4 1990 s.21(2)for the year 1990-91and subsequent years. Previously

“section 155”.

Modifications etc. (not altering text)

C1 S. 154 excluded (N.I.) (in operation 30.12.1991 with effect from 1.9.1991) by S.R. 1991/508, regs. 1(2), 13(1)(b)(3), 15(2), Sch. 8 para. 5(6)(with Sch. 10)

S. 154 excluded (N.I.) (1.9.1992) by S.R. 1992/363, regs. 13(1)(b)(3), 15(2), Sch. 8 Pt. II para. 5(6).

Marginal Citations

M1 Source—1976 s.61; 1977 Sch.8 5; 1981 s.30(3)