Chapter V

Benefits in Kind

22. —(1) Where a person (in this section referred to as “the employee”) holds an office or employment and—

(a) the profits or gains arising to him from that office or employment are, by virtue of section 52 of the Income Tax Act, 1967 , chargeable to tax under Case III of Schedule D, and

(b) he receives a sum in respect of expenses or derives a benefit, being a sum or benefit to which this section applies,

the profits or gains from that office or employment assessable to tax shall include the specified amount and shall be charged to tax accordingly.

(2) This section applies to any sum received or benefit derived by the employee in respect of which there would be a charge to tax by virtue of Chapter III of Part V of the Income Tax Act, 1967 , if the office or employment held by him were one the profits or gains from which were chargeable to tax under Schedule E.

(3) The specified amount referred to in subsection (1) is the amount which would by virtue of the said Chapter III be chargeable to tax in respect of the sum or benefit to which this section applies if the profits or gains from the office or employment referred to in that subsection were chargeable to tax under Schedule E.

23. —Where, by virtue of section 117 of the Income Tax Act, 1967 , a charge to tax falls to be made on any person in respect of the benefit derived by him from the provision of a vehicle within the meaning of section 30 of the Finance Act, 1973 , the amount to be charged to tax in respect of that benefit shall not, for the year 1976-77 or any subsequent year of assessment, be less than the greater of the following two amounts—

(a) £300, or

(b) 15 per cent. of the relevant cost of the vehicle within the meaning of section 32:

Provided that the amounts specified in paragraphs (a) and (b) shall, in a case where the vehicle is provided for part only of a year of assessment, be reduced in the proportion which that part of the year bears to the said year.