Section 365 | Deductions where certain employment-related benefits provided

(1)A deduction from earnings is allowed if—

(a)the earnings include an amount treated as earnings under Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of a benefit, ...

(aa)the cost of the benefit was determined under section 204 or 206, and^F1

(b)had the employee incurred and paid the cost of the benefit, the whole or part of the amount paid would have been deductible under Chapter 2 or 5 of this Part.

(2)The deduction is equal to the amount that would have been so deductible.

(3)For the purposes of this section, the cost of the benefit is determined in accordance with section 204 or 206 .^F2