Section 109 — Income Tax (Earnings and Pensions) Act 2003: Priority of this Chapter over Chapter 1 of this Part

Priority of this Chapter over Chapter 1 of this Part 109 1 This section applies if—

a under this Chapter an amount is to be treated as earnings from an employee’s employment for a tax year, and b under Chapter 1 of this Part an amount would, apart from this section, constitute earnings from the employment for the year in respect of the provision of the accommodation.

2 The full amount mentioned in subsection (1)(a) is to be treated as earnings from the employment for that year under this Chapter.

3 The amount mentioned in subsection (1)(b) is to constitute earnings from the employment for the year under Chapter 1 of this Part only to the extent that it exceeds the amount mentioned in subsection (2).

4 In a case where the amount mentioned in subsection (1)(a) is nil—

a subsections (2) and (3) do not apply, and b the full amount mentioned in subsection (1)(b) constitutes earnings from the employment for the year under Chapter 1.