Income and Corporation Taxes Act 1988

154 General charging provision

(1) Subject to section 163, where in any year a person is employed in director’s or higher-paid employment 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, 160 or 162;

and subject to the exceptions provided for by section 155.

(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.