Case Law

A benefit is ‘provided’ at the point in time when it became available to be enjoyed by the taxpayer and not when the cost of providing the benefit was incurred. Templeton V Jacobs 1996 STC 991

A cash payment made by an educational trust, established by the taxpayer’s employer, to the minor child of a taxpayer, was caught under the term ‘benefits and facilities of whatsoever nature’. Wicks v Firth 1984 56 TC 318

The expression ‘benefits and facilities of whatsoever nature’ also covers a cash payment made directly to the taxpayer. Mairs v Haughey 1992 STC 495

Expenditure by a company on repairs of a house let to a director where such repairs are of a nature that usually fall on the tenant are assessable as a benefit-in-kind. Doyle v Davison 40 TC 140

However, in the UK case of IRC v Luke 40 TC 630, expenditure on repairs, being of a kind which would normally fall on an owner, were not a taxable benefit-in-kind.

“This appeal concerned the right of a company to make tax free payments to an employee in respect of travel and subsistence.” 20TACD2018

In this case accommodation provided to the Appellant by his employer was determined to be chargeable to income tax as a benefit-in-kind. 16TACD2021

Whether the company had correctly treated payments to the taxpayer relating to travel and subsistence. 106TACD2022