188体育

Sections 201(3) and 721(5) ITEPA 2003

A benefit provided for a member of an employee鈥檚 family or household, whether by his employer or someone else, is chargeable on him under the benefits code if it is provided by reason of his employment.

If the benefit is provided by the employee鈥檚 employer it is deemed to be provided by reason of the employment (Section 201(3) ITEPA 2003) and the guidance at EIM20502, including the exception mentioned there, applies.

鈥楩amily or household鈥� (Section 721(5) ITEPA 2003) means:

• the employee鈥檚 spouse or (from 5 December 2005) civil partner
• the employee鈥檚 children and their spouses or (from 5 December 2005) civil partners
• the employee鈥檚 parents
• the employee鈥檚 dependants
• the employee鈥檚 domestic staff and
• the employee鈥檚 guests (that is people staying at his invitation in his home or in accommodation provided by him).

Thus an employee who takes his family away on holiday at his employer鈥檚 expense is chargeable not only on the cost of his own holiday fares and accommodation but also on the cost of those relating to his wife and family.

Different rules apply where the benefit is a beneficial loan (EIM26112), the employee is retired (EIM20040 and EIM15055), or the acquisition of shares at an undervalue (Share Schemes Manual 6.20).