Income Tax (Earnings and Pensions) Act 2003 section 202

Excluded benefits

Section 202 defines which benefits are classed as "excluded benefits" and therefore fall outside the scope of the residual benefits charge in Chapter 10 of the benefits code.

• A benefit is excluded if it is already covered by Chapters 3 to 9 of the benefits code, or if it would be covered but for a specific statutory exception within those chapters.
• A benefit consisting of the right or prospect of receiving sickness or disability payments treated as earnings under section 221 is also an excluded benefit.
• However, where such a sickness or disability benefit is provided under optional remuneration arrangements, it loses its excluded status and can therefore be caught by Chapter 10.
• Transport vouchers under pre-26 March 1982 arrangements (section 86) are not treated as an exception for these purposes, meaning they remain within the scope of Chapter 10.