268. The scope of the benefits code and its relationship with earnings.

The benefits code1 applies to supplement the charge on benefits in kind as determined under the general 'earnings' rule in section 62 of the Income Tax (Earnings and Pensions) Act 20032. The benefits code taxes non-convertible benefits that would otherwise escape a charge to tax under section 62. It also taxes benefits in kind generally on the cost of the benefit to the employer rather than the second-hand value under section 62. To avoid a double tax charge under both section 62 and the benefits code, section 62 is given priority