Income Tax (Earnings and Pensions) Act 2003 section 201

Employment-related benefits

Section 201 defines what constitutes an employment-related benefit and establishes the scope of the residual benefits charge under Chapter 10.

• A "benefit" means any kind of benefit or facility, and an "employment-related benefit" is one provided in a tax year for an employee (or their family/household member) by reason of the employment, excluding certain benefits defined in section 202
• Any benefit provided by an employer is presumed to arise by reason of the employment, unless the employer is an individual and the benefit is provided in the normal course of domestic, family or personal relationships
• The employment does not need to be held at the exact time the benefit is provided — it is sufficient that the employment existed at some point during the tax year in which the benefit was given
• References to an "employee" in this chapter include both prospective and former employees, ensuring coverage of benefits provided before employment begins or after it ends