Income Tax (Earnings and Pensions) Act 2003 section 415

Valuation of benefits

Section 415 sets out how to value both cash and non-cash benefits that are chargeable to tax under the termination and change of employment rules in this chapter.

• Cash benefits are valued simply at the amount received
• Non-cash benefits are valued at the higher of their money's worth as earnings or their cash equivalent under the benefits code
• The benefits code is modified so that references to "employee" cover the taxable person or actual recipient, and references to "employer" include a former employer
• Special rules apply to living accommodation costing over £75,000, allowing a full deduction for any amount the recipient has made good, not just the excess rent