Where a body corporate incurs expenses in providing directors or employees with living accommodation, entertainment, domestic or other services, or other benefits that would not otherwise be taxable as the recipient’s income, sections 112, 114 and 897 apply to the portion not made good by the director or employee as if the expense had been incurred and refunded to that person; income tax is chargeable accordingly.

Subsection (1) is subject to detailed exemptions and conditions: accommodation used solely for performance of duties; required residence accommodation meeting historic practice or necessity (not where the recipient is a director or certain controlled-company relationships apply); staff canteen meals; pensions, annuities, lump sums, gratuities and PRSA/PEPP contributions within employer limits; approved travel passes; business mobile phones, high‑speed home internet (≥250 kb/s) and computer equipment where private use is incidental; professional membership fees (not applying for 2011 onwards); goods‑carrying vehicles; bicycles and safety equipment (limits and conditions, including multi‑year limits and higher caps for pedelecs/cargo bicycles); workplace or home EV charging facilities; qualifying medical checks, general health care, Covid‑19 tests and specified influenza vaccines; employee contributions under Chapter 2E. Expenses may be apportioned and expenses incurred by connected persons (trustees of settlements or connected bodies corporate as per section 10) are deemed incurred by the body corporate.