Section 365 — Income Tax (Earnings and Pensions) Act 2003: Deductions where certain employment-related benefits provided

Deductions where certain employment-related benefits provided 365 1 A deduction from earnings is allowed if—

a the earnings include an amount treated as earnings under Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of a benefit, ... aa the cost of the benefit was determined under section 204 or 206, and b had the employee incurred and paid the cost of the benefit, the whole or part of the amount paid would have been deductible under Chapter 2 or 5 of this Part.

2 The deduction is equal to the amount that would have been so deductible.

3 For the purposes of this section, the cost of the benefit is determined in accordance with section 204 or 206 .