Section 289D | Exemption for other benefits ^F1

(1)No liability to income tax arises by virtue of any provision of the benefits code in respect of an amount (“amount A”) treated as earnings of an employee as a result of the provision of a benefit if—

(a)an amount equal to amount A would (ignoring this section) be allowed as a deduction from the employee's earnings under Chapter 3 of Part 5 in respect of the provision of the benefit, and

(b)the benefit is not provided pursuant to relevant salary sacrifice arrangements.

(2)“Relevant salary sacrifice arrangements”, in relation to an employee to whom a benefit is provided, means arrangements (whenever made, whether before or after the employment began) under which—

(a)the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of the benefit, or

(b)the amount of other general earnings or specific employment income received by the employee depends on the provision of the benefit.