Corporation Tax Act 2009 section 1293

Timing and amount of certain qualifying benefits

Section 1293 establishes when qualifying benefits provided through employee benefit schemes are treated as having been provided, and how to measure their value for the purpose of allowing a corporation tax deduction.

• Cash benefits are treated as provided when the money is treated as received under the employment income rules in ITEPA 2003, using the normal rules for receipt of money earnings.
• Where a benefit takes the form of an asset transfer, the deductible amount is calculated as the total of the cost of the asset to the scheme manager, any amount representing the employer's original transfer, and, if applicable, the cost of any chargeable relevant step — but this total is capped at the amount actually charged to income tax on the employee.
• Benefits that constitute a chargeable relevant step (a taxable action under the disguised remuneration rules) are treated as provided either when the employee's employment begins or when the step is taken, whichever is later.
• For any chargeable relevant step, the corporation tax deduction cannot exceed the amount charged to income tax on the employee (or the amount that would have been charged had the employee been UK resident throughout).