SCHEDULES

SCHEDULE 2Optional remuneration arrangements

Benefits in kind: amount treated as earnings

13

1

Section 102 (benefit of living accommodation treated as earnings) is amended as follows.

2

In subsection (1), for the words before paragraph (a) substitute “ This section applies if living accommodation to which this Chapter applies is provided in any period (“the taxable period”)— ”.

3

The words in subsection (1) from “the cash equivalent” to the end become subsection (1A).

4

After subsection (1A) insert—

1B

If the benefit of the accommodation is provided pursuant to optional remuneration arrangements—

a

subsection (1A) does not apply, and

b

the relevant amount is to be treated as earnings from the employment for that tax year.

5

Omit subsection (2).

6

At the end insert—

4

Section 103A indicates how the relevant amount is determined.