Income Tax (Earnings and Pensions) Act 2003 section 64

Relationship between earnings and benefits code

Section 64 provides a rule to prevent double taxation where the same benefit could give rise to both an earnings amount and a benefits code amount.

• Where a single benefit could produce both a general earnings amount and a benefits code amount, the general earnings amount takes priority
• Only the excess of the benefits code amount over the general earnings amount is additionally taxed under the benefits code
• This prevents the same benefit from being taxed twice in full under two different charging provisions
• Living accommodation is excluded from this rule and is instead dealt with separately under its own provisions