EIM21002 - The benefits code: what is meant by a 鈥渂enefit鈥�
Section 201 ITEPA 2003
Section 201(1) ITEPA 2003 concerns 鈥渆mployment-related benefits鈥�.
A benefit is defined in section 201(2) as 鈥渁 benefit or facility of any kind鈥�. When a benefit is provided to an employee (or to any member of his or her family or household (section 721(5) ITEPA 2003) by reason of the employment (EIM20501), it is an 鈥渆mployment-related benefit鈥� (section 201(2)).
The definition of what is a benefit is thus very wide and includes everything that confers a special bounty of any description on the recipient.
However, something (other than a loan where special provisions apply, see EIM26101 and EIM26111) which is a 鈥渇air bargain鈥� (EIM21004) between the employer and the employee is not a 鈥渂enefit鈥�.
For benefits specifically exempted from charge see EIM21240.