Where living accommodation is provided under optional remuneration arrangements (salary sacrifice) (see E4.601B) the amount to be treated as earnings is the 'relevant amount' rather than the cash equivalent1.
The relevant amount is determined through a comparison of the modified cash equivalent (see below) of the benefit and the amount forgone (see E4.601B) with respect to the benefit. Where it is necessary to make an apportionment of the amount forgone for this purpose it must be on a just and reasonable basis2. If the modified cash equivalent is greater than or equal to the amount forgone, then the relevant amount is the cash equivalent described in E4.610A, E4.610B. If the amount forgone is greater the relevant amount is the amount forgone less a 'deductible amount' (see below)3. However,
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