Income Tax (Earnings and Pensions) Act 2003 section 69B

Optional remuneration arrangements: supplementary

Section 69B provides supplementary definitions and rules that support the optional remuneration arrangements provisions, including how to calculate "the amount foregone" and how to apportion earnings where necessary.

• The "amount foregone" is the salary or earnings an employee gives up (or the cash alternative not taken) in exchange for receiving a benefit, whether under type A, type B, or a combination of both arrangements.
• Where the amount of earnings attributable to a specific benefit is not immediately clear, an apportionment must be carried out on a just and reasonable basis.
• Benefits provided to a member of an employee's family or household are treated as if they were provided to the employee themselves.
• "Benefit" is widely defined to include any benefit or facility in any form, and "earnings" covers amounts the employee would have received had they not opted for the benefit.