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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.6 The benefits code /Benefits code—residual liability to charge / E4.661 Residual charge—optional remuneration arrangements
Commentary

E4.661 Residual charge—optional remuneration arrangements

Personal and employment tax

Where an employment-related benefit is provided under optional remuneration arrangements (salary sacrifice), (see E4.601B) the amount to be treated as earnings is the 'relevant amount'1. The relevant amount is determined by a comparison between the amount forgone under the arrangements and the cost of provision of the benefit. If the cost of provision is greater than or equal to the amount forgone, the relevant amount to be treated as earnings is the cash equivalent

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