Legislation

The legislation covering benefits in kind and expenses is covered within the following Act that was passed by Tynwald.

• The Income Tax Act 1970
• The Income Tax (Benefits in Kind) (Exemptions) Order 2007
• The Income Tax Act 2008

The Income Tax Act 1970

• Section 2F Sets out the treatment of payments in respect of expenses
• Section 2G Informs what a benefit in kind is; who it applies to and that the Treasury may provide for exemptions
• Section 2H How to calculate the benefit in kind charge for general benefits
• Section 2I How to calculate the benefit in kind charge for a car made available for private use
• Section 2J How to calculate the benefit in kind charge for fuel provided to an employee
• Section 2K Sets out the treatment of pool cars

The Income Tax (Benefits in Kind) (Exemptions) Order 2007

• qualifies the exemptions conferred by Treasury under section 2G(4) of the Income Tax Act 1970

The Income Tax Act 2008

• This revises the method of charging car and fuel benefits in kind from a market value basis to a cylinder capacity basis.