Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 5Taxable benefits: living accommodation

Other tax implications

109Priority of this Chapter over Chapter 1 of this Part

1

This section applies if—

a

under this Chapter F3an amount is to be treated as earnings from an employee’s employment for a tax year, and

b

under Chapter 1 of this Part an amount would, apart from this section, constitute earnings from the employment for the year in respect of the provision of the accommodation.

2

The full amount F1mentioned in subsection (1)(a) is to be treated as earnings from the employment for that year under this Chapter.

3

The amount mentioned in subsection (1)(b) is to constitute earnings from the employment for the year under Chapter 1 of this Part only to the extent that it exceeds the amount mentioned in subsection (2).

F24

In a case where the F4amount mentioned in subsection (1)(a) is nil—

a

subsections (2) and (3) do not apply, and

b

the full amount mentioned in subsection (1)(b) constitutes earnings from the employment for the year under Chapter 1.