E4.601 Benefits code—overview
Where value of any kind is transferred to an employee, the first question is whether it constitutes earnings under ITEPA 2003, s 62. The scope of this charge is dealt with in Division E4.4, but it may be roughly summarised as applying to money and money's worth. For instance, an asset transferred to an employee would give rise to a charge on the money's worth of the asset: typically the second-hand value. However, this in itself would not always result in the taxation of benefits-in-kind provided to an employee or their family by reason of the employment, or it may not result in the provision of an asset being taxed at the cost of providing it, which will usually be greater than its second-hand value. The benefit could also be an item
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