Section 394 | Charge on benefit to which this Chapter applies

(1)If a benefit to which this Chapter applies is received by an individual, the amount of the benefit counts as employment income of the individual for the relevant tax year.

(1A)Subsection (1) does not apply in relation to the benefit if the total amount of the benefits to which this Chapter applies received by the individual in the relevant tax year does not exceed £100.^F1

(2)If a benefit to which this Chapter applies is received by a person who is not an individual, the person who is (or persons who are) the responsible person in relation to the scheme under which the benefit is provided is chargeable to income tax on the amount of the benefit for the relevant tax year.^F2F3

(3)In this section the “relevant tax year” is the tax year in which the benefit is received.^F4

(4)For the purposes of subsection (2), the rate of tax is 45% or such other rate as may for the time being be specified by the Treasury by order.^F5

(4A)Subsection (4B) applies if the receipt of a benefit to which this Chapter applies gives rise to other relevant income of the employee, or the former employee, to or in respect of whom the benefit is provided.^F6

(4B)Subsection (1) or (2) (as the case may be) applies to the amount of the benefit only so far as that amount exceeds the other relevant income.^F6

(4C)In subsections (4A) and (4B) “other relevant income” means—^F6

(a)general earnings of the employee or former employee which are chargeable to income tax,^F6

(b)an amount which counts as employment income of the employee or former employee under Chapter 2 of Part 7A, ...^F6

(ba)an amount which would count as employment income of the employee or former employee under that Chapter but for the application of section 554Z5 (overlap with earlier relevant step), or^F6F7

(c)an amount which would be within paragraph (a), (b) or (ba) apart from—^F6F8

(i)the employee or former employee having been non-UK resident for any tax year, or^F6F8

(ii)any tax year having been a split year as respects the employee or former employee.^F6F8

(5)No liability to income tax arises by virtue of any other provision of this Act in respect of a benefit to which this Chapter applies.

(6)Subsection (5) does not affect—^F9

(a)any liability to income tax on general earnings, or^F9

(b)any liability to income tax on an amount which counts as employment income under Chapter 2 of Part 7A.^F9