Finance Act 2017

Benefits in kind: amount treated as earnings

17 (1) Section 106 (cash equivalent: cost of accommodation over £75,000) is amended as follows.

(2) In subsection (1), after “equivalent” insert “or modified cash equivalent”.

(3) After subsection (2) insert—

“(2A) To calculate the modified cash equivalent—

(a) apply steps 1 to 3 in subsection (2), as if the words “cash equivalent” in step 1 were “modified cash equivalent (for the purposes of section 105)”;

(b) calculate the modified cash equivalent by adding together the amounts calculated under steps 1 and 3 as applied by paragraph (a).”