Income Tax (Earnings and Pensions) Act 2003 section 208

Meaning of "market value"

Section 208 defines what "market value" means for the purposes of the employment income benefits code, establishing the standard by which assets provided as benefits are to be valued.

• Market value is defined as the price an asset could reasonably be expected to fetch if sold on the open market
• The valuation must reflect what the asset would sell for at the specific point in time in question
• The definition applies throughout the benefits code chapter and ensures a consistent basis for valuing non-cash benefits
• The open market test assumes a willing buyer and seller in a normal commercial transaction, not a forced or private sale