Section 289D — Income Tax (Earnings and Pensions) Act 2003: Exemption for other benefits

Exemption for other benefits 289D 1 No liability to income tax arises by virtue of any provision of the benefits code in respect of an amount (“amount A”) treated as earnings of an employee as a result of the provision of a benefit if—

a an amount equal to amount A would (ignoring this section) be allowed as a deduction from the employee's earnings under Chapter 3 of Part 5 in respect of the provision of the benefit, and b the benefit is not provided pursuant to relevant salary sacrifice arrangements. 2 “ Relevant salary sacrifice arrangements ”, in relation to an employee to whom a benefit is provided, means arrangements (whenever made, whether before or after the employment began) under which—

a the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of the benefit, or b the amount of other general earnings or specific employment income received by the employee depends on the provision of the benefit.