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(3) No liability to income tax arises in respect of— | |
(a) the provision of fuel for the car, or | |
(b) the payment or reimbursement of expenses incurred in connection with | |
it, | |
if conditions A to C are met. | 5 |
(4) Condition A is that the car has been adapted for the employee’s special needs | |
or, in the case of an employee who because of disability can only drive a car | |
that has automatic transmission, it is such a car. | |
(5) Condition B is that the car is made available on terms prohibiting its use | |
otherwise than for— | 10 |
(a) the employee’s business travel, or | |
(b) transport for the employee for the purpose of— | |
(i) ordinary commuting or travel between any two places that is | |
for practical purposes substantially ordinary commuting, or | |
(ii) travel to a place the expenses of travelling to which would be | 15 |
within one of the training exemption provisions if the employer | |
paid them. | |
(6) Condition C is that in the tax year the car is only used in accordance with those | |
terms. | |
(7) In this section— | 20 |
“business travel” has the same meaning as in Chapter 3 of Part 6 (taxable | |
benefits: cars, vans and related benefits) (see section 171(1)), | |
“disabled employee” has the same meaning as in section 246 (see | |
subsection (4)), and | |
“the training exemption provisions” means— | 25 |
section 250 (exemption of work-related training provision), | |
section 255 (exemption for contributions to individual learning account | |
training), and | |
section 311 (retraining courses). | |
(8) Section 138(4) (when a car has automatic transmission) applies for the | 30 |
purposes of this section as it applies for the purposes of section 138. | |
248 Transport home: late night working and failure of car-sharing arrangements | |
(1) No liability to income tax arises in respect of the provision of transport or the | |
payment or reimbursement of expenses incurred on transport if— | |
(a) the transport is for a journey from the employee’s workplace to the | 35 |
employee’s home, | |
(b) the late working conditions or the car-sharing failure conditions are | |
met, and | |
(c) the number of previous occasions in the tax year on which the | |
provision of transport within this section or the payment or | 40 |
reimbursement of expenses within this section has occurred is lower | |
than 60. | |
(2) The late working conditions are that— | |
(a) the journey is made on an occasion when the employee is required to | |
work later than usual and until at least 9 p.m., | 45 |
(b) such occasions occur irregularly, | |
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(c) by the time when the employee ceases work— | |
(i) public transport has ceased to be available for the journey, or | |
(ii) it would not be reasonable to expect the employee to use it, and | |
(d) the transport is by taxi or similar private road transport. | |
(3) The car-sharing failure conditions are that— | 5 |
(a) the employee regularly travels to work in a car with one or more other | |
employees of the employee’s employer under arrangements for the | |
sharing of the car with them, and | |
(b) the journey is made on an occasion when the employee is unable to use | |
the car because of unforeseen and exceptional circumstances. | 10 |
249 Interpretation of this Chapter | |
In this Chapter— | |
“car” and “van” have the same meaning as in Chapter 3 of Part 6 (taxable | |
benefits: cars, vans and related benefits) (see section 115), except that | |
for the purposes of sections 246 and 247 (transport for the disabled) any | 15 |
adaptation of a car for the employee’s special needs is to be | |
disregarded, | |
“ordinary commuting” has the same meaning as in section 338 (travel for | |
necessary attendance) (see subsection (3)), | |
“qualifying journey”, in relation to an employee, means the whole or part | 20 |
of a journey— | |
(a) between the employee’s home and workplace, | |
(b) between one workplace and another, | |
in connection with the performance of the duties of the employment, and | |
“workplace” and “permanent workplace” have the meaning given by | 25 |
section 339. | |
Chapter 4 | |
Exemptions: education and training | |
Work-related training | |
250 Exemption of work-related training provision | 30 |
(1) No liability to income tax arises by virtue of— | |
(a) the provision for an employee of work-related training or any benefit | |
incidental to such training, or | |
(b) the payment or reimbursement to or in respect of an employee of— | |
(i) the cost of work-related training or of any benefit incidental to | 35 |
such training, or | |
(ii) any costs of a kind specified in subsection (2) in respect of such | |
training. | |
(2) The costs are— | |
(a) costs which are incidental to the employee undertaking the training, | 40 |
(b) expenses incurred in connection with an examination or other | |
assessment of what the employee has gained from the training, and | |
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(c) the cost of obtaining any qualification, registration or award to which | |
the employee becomes or may become entitled as a result of the | |
training or such an examination or other assessment. | |
251 Meaning of “work-related training” | |
(1) In this Chapter “work-related training”, in relation to an employee, means a | 5 |
training course or other activity designed to impart, instil, improve or reinforce | |
any knowledge, skills or personal qualities which— | |
(a) are likely to prove useful to the employee when performing the duties | |
of the employment or a related employment, or | |
(b) will qualify or better qualify the employee— | 10 |
(i) to perform those duties, or | |
(ii) to participate in any charitable or voluntary activities that are | |
available to be performed in association with the employment | |
or a related employment. | |
(2) For this purpose “related employment”, in relation to an employee, means | 15 |
another employment with the same employer, or with a person connected with | |
the employer, which the employee— | |
(a) is to hold, | |
(b) has a serious opportunity of holding, or | |
(c) can realistically expect to have a serious opportunity of holding in due | 20 |
course. | |
252 Exception for non-deductible travel expenses | |
(1) Where travel or subsistence is provided or the costs of travel or subsistence are | |
paid or reimbursed, section 250 does not apply except to the extent that the | |
travel meets condition A or B or the subsistence meets condition B. | 25 |
(2) Condition A is that, on the assumptions in subsection (4), mileage allowance | |
relief under Chapter 2 of this Part would be available for the travel if no | |
mileage allowance payments had been made. | |
(3) Condition B is that, on those assumptions, the expenses of the travel or | |
subsistence would be deductible under Part 5. | 30 |
(4) The assumptions are— | |
(a) that the employee undertook the training as one of the duties of the | |
employment, and | |
(b) that the employee incurred and paid the expenses. | |
(5) In this section— | 35 |
“mileage allowance payments” has the meaning given by section 229(2), | |
and | |
“subsistence” includes food, drink and temporary living accommodation. | |
253 Exception where provision for excluded purposes | |
(1) Section 250 does not apply if or to the extent that the facilities or other benefits | 40 |
that are provided or the costs of which are paid or reimbursed are provided to | |
the employee for one or more of the following purposes. | |
(2) They are— | |
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(a) enabling the employee to enjoy the facilities or benefits for | |
entertainment or recreational purposes which are unconnected, | |
(b) providing the employee with an unconnected inducement to remain in | |
or accept an employment with the employer or a person connected | |
with the employer, and | 5 |
(c) rewarding the employee for performing duties of the employment or | |
performing them in a particular way. | |
(3) In subsection (2)(a) the reference to enjoying facilities or benefits for | |
entertainment or recreational purposes includes a reference to enjoying them | |
in the course of a leisure activity. | 10 |
(4) In subsection (2)(a) and (b) “unconnected” means unconnected with imparting, | |
instilling, improving or reinforcing knowledge, skills or personal qualities | |
within section 251(1). | |
254 Exception where unrelated assets are provided | |
(1) Section 250 does not apply if the benefit that is provided or the cost of which is | 15 |
paid or reimbursed is, or is the use of, an asset that is not a training-related | |
asset. | |
(2) “Training-related asset”, in relation to work-related training provided to an | |
employee, means— | |
(a) an asset provided for use only— | 20 |
(i) in the course of the training, or | |
(ii) in the course of the training and in the performance of the duties | |
of the employee’s employment, | |
(b) training materials provided in the course of the training, or | |
(c) something made by the employee in the course of the training or | 25 |
incorporated into something so made. | |
(3) For this purpose, “training materials” includes stationery, books or other | |
written material, audio or video tapes, compact disks or floppy disks. | |
Individual learning account training | |
255 Exemption for contributions to individual learning account training | 30 |
(1) No liability to income tax in respect of income from a current or former | |
employment arises by virtue of— | |
(a) the provision to a person within subsection (2) (“the employee”) of | |
individual learning account training that is given by a person who is | |
not the employee’s employer or former employer, | 35 |
(b) any payment to the person giving the training in respect of the cost of | |
that provision, | |
(c) the provision to the employee of any benefit incidental to such training, | |
or | |
(d) the payment or reimbursement of any costs in respect of such training | 40 |
of a kind specified in subsection (3). | |
(2) A person is within this subsection if the person either— | |
(a) holds an account that qualifies under section 104 of the Learning and | |
Skills Act 2000 (c. 21), or | |
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| |
(b) is a party to arrangements that qualify under section 105 or 106 of that | |
Act or section 2 of the Education and Training (Scotland) Act 2000 (asp. | |
8). | |
(3) The costs are— | |
(a) costs which are incidental to the employee undertaking the training, | 5 |
(b) expenses incurred in connection with an examination or other | |
assessment of what the employee has gained from the training, and | |
(c) the cost of obtaining any qualification, registration or award to which | |
the employee becomes or may become entitled as a result of the | |
training or such an examination or other assessment. | 10 |
256 Meaning of “individual learning account training” | |
In this Chapter “individual learning account training” means training or | |
education of a kind that qualifies for grants authorised by— | |
(a) regulations under section 108 or 109 of the Learning and Skills Act 2000 | |
(c. 21), or | 15 |
(b) regulations under section 1 of the Education and Training (Scotland) | |
Act 2000 (asp. 8). | |
257 Exception for non-deductible travel expenses | |
(1) Where travel or subsistence is provided or the costs of travel or subsistence are | |
paid or reimbursed, section 255 does not apply except to the extent that the | 20 |
travel meets condition A or B or the subsistence meets condition B. | |
(2) Condition A is that, on the assumptions in subsection (4), mileage allowance | |
relief under Chapter 2 of this Part would be available for the travel if no | |
mileage allowance payments had been made. | |
(3) Condition B is that, on those assumptions, the expenses of the travel or | 25 |
subsistence would be deductible under Part 5. | |
(4) The assumptions are— | |
(a) that the employee undertook the training as one of the duties of the | |
employment, and | |
(b) that the employee incurred and paid the expenses. | 30 |
(5) In this section— | |
“mileage allowance payments” has the meaning given by section 229(2), | |
and | |
“subsistence” includes food, drink and temporary living accommodation. | |
258 Exception where provision for excluded purposes | 35 |
(1) Section 255 does not apply if or to the extent that the facilities or other benefits | |
that are provided or made available or the costs of which are paid or | |
reimbursed are provided or made available for either or both of the following | |
purposes. | |
(2) They are— | 40 |
(a) enabling the employee or former employee to enjoy the facilities or | |
benefits for entertainment or recreational purposes, and | |
| |
| |
|
| |
| |
(b) rewarding the employee or former employee for performing duties of | |
the employment or former employment or performing them in a | |
particular way. | |
(3) In subsection (2)(a) the reference to enjoying facilities or benefits for | |
entertainment or recreational purposes includes a reference to enjoying them | 5 |
in the course of a leisure activity. | |
259 Exception where unrelated assets are provided | |
(1) Section 255 does not apply if the benefit that is provided, or the use of which is | |
provided, or the cost of which is paid or reimbursed is an asset that is not a | |
training-related asset. | 10 |
(2) “Training-related asset”, in relation to individual learning account training | |
provided to an employee or former employee, means— | |
(a) an asset provided— | |
(i) for use only in the course of the training, or | |
(ii) for use in the course of the training and in the performance of | 15 |
the duties of the employee’s employment, but not to any | |
significant extent for any other use, or | |
(b) training materials provided in the course of the training, or | |
(c) something made by the employee or former employee in the course of | |
the training or incorporated into something so made. | 20 |
(3) For this purpose, “training materials” includes stationery, books or other | |
written material, audio or video tapes, compact disks or floppy disks. | |
260 Exception where training not generally available to staff | |
(1) Section 255(1) only applies if any expenditure involved in making the | |
provision, the payment or the reimbursement is incurred in giving effect to | 25 |
existing arrangements providing— | |
(a) for the person incurring it to contribute to costs arising from the | |
undertaking of individual learning account training by the employer’s | |
employees or former employees, and | |
(b) for such contributions to be generally available, on similar terms, to the | 30 |
employer’s employees at that time. | |
(2) In subsection (1) “existing arrangements” means arrangements in place when | |
the agreement to incur the expenditure was made. | |
(3) The Treasury may by regulations make provision specifying the persons or | |
other entities under whom Crown servants are to be treated for the purposes | 35 |
of this section as holding employment. | |
(4) Such regulations may— | |
(a) treat a description of Crown servants (or two or more such descriptions | |
taken together) as an entity for the purposes of the regulations, and | |
(b) make different provision for different descriptions of Crown servants. | 40 |
(5) In this section “Crown servant” means a person holding an employment under | |
the Crown. | |
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Chapter 5 | |
Exemptions: recreational benefits | |
Recreational facilities | |
261 Exemption of recreational benefits | |
(1) No liability to income tax arises in respect of the provision to an employee or a | 5 |
member of an employee’s family or household of benefits within subsection | |
(2). | |
(2) The benefits are— | |
(a) sporting or other recreational facilities which meet conditions A to C, | |
and | 10 |
(b) a right or opportunity to make use of such facilities. | |
This is subject to section 262. | |
(3) Condition A is that the facilities are available generally to the employees of the | |
employer in question. | |
(4) Condition B is that they are not available to members of the public generally. | 15 |
(5) Condition C is that they are used wholly or mainly by persons whose right or | |
opportunity to use them is employment-related (whether or not by reference | |
to the same employer). | |
(6) A person’s right or opportunity to use facilities is “employment-related” if and | |
only if— | 20 |
(a) it derives from the person being— | |
(i) an employee or former employee, or | |
(ii) a member or former member of the family or household of an | |
employee or former employee, | |
of a particular employer, and | 25 |
(b) the facilities are provided so as to be available generally to that | |
employer’s employees. | |
262 Benefits not exempted by section 261 | |
(1) Section 261 (exemption of recreational benefits) does not apply to the following | |
benefits— | 30 |
(a) an interest in or the use of any of the following— | |
(i) a mechanically propelled vehicle, | |
(ii) holiday or other overnight accommodation, or | |
(iii) facilities which include, or are provided in association with, a | |
right or opportunity to make use of holiday or overnight | 35 |
accommodation, | |
(b) facilities provided on domestic premises, or | |
(c) a right or opportunity to make use of facilities within paragraph (a) or | |
(b). | |
(2) In this section— | 40 |
“domestic premises” means— | |
(a) premises used wholly or mainly as a private dwelling, or | |
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