87Benefit of non-cash voucher treated as earningsU.K.
(1)The cash equivalent of the benefit of a non-cash voucher to which this Chapter applies is to be treated as earnings from the employment for the tax year in which the voucher is received by the employee.
(2)The cash equivalent is the difference between—
(a)the cost of provision, and
(b)any part of that cost made good by the employee to the person incurring it.
(3)In this Chapter the “cost of provision” means, in relation to a non-cash voucher, the expense incurred in or in connection with the provision of—
(a)the voucher, and
(b)the money, goods or services for which it is capable of being exchanged,
by the person at whose cost they are provided.
(4)In the case of a transport voucher, the reference in subsection (3)(b) to the services for which the voucher is capable of being exchanged is to the passenger transport services which may be obtained by using it.
(5)If a person incurs expense in or in connection with the provision of non-cash vouchers for two or more employees as members of a group or class, the expense incurred in respect of one of them is to be such part of that expense as is just and reasonable.
(6)This section is subject to section 89 (reduction for meal vouchers).