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88 Year in which earnings treated as received | |
(1) In the case of a non-cash voucher other than a cheque voucher, the amount | |
treated as earnings under section 87 is to be treated as received— | |
(a) in the tax year in which the cost of provision is incurred, or | |
(b) if later, in the tax year in which the voucher is received by the | 5 |
employee. | |
(2) In the case of a cheque voucher, the amount treated as earnings under section | |
87 is to be treated as received in the tax year in which the voucher is handed | |
over in exchange for money, goods or services. | |
(3) Where a cheque voucher is posted it is to be treated as handed over at the time | 10 |
of posting. | |
89 Reduction for meal vouchers | |
(1) This section applies where— | |
(a) the non-cash voucher is a meal voucher, | |
(b) it is provided for an employee for use on a working day, and | 15 |
(c) meal vouchers are made available to all employees (if any) employed | |
by the same employer in lower-paid employment within the meaning | |
of Chapter 11 of this Part (see section 217). | |
(2) The total of the cash equivalents of the benefit of any meal vouchers so | |
provided is to be reduced by 15p for each working day for which the vouchers | 20 |
are provided. | |
(3) In this section— | |
“meal voucher” means a non-cash voucher which— | |
(a) can only be used to obtain meals, | |
(b) is not transferable, and | 25 |
(c) is not of the kind in respect of which no liability to income tax | |
arises under section 266(3)(e) (subsidised meals), and | |
“working day” means a day on which the employee is at work. | |
(4) Section 83 (references to provision for an employee include provision for a | |
member of the employee’s family) does not apply to subsection (1)(b). | 30 |
Credit-tokens: introduction | |
90 Credit-tokens to which this Chapter applies | |
(1) This Chapter applies to a credit-token provided for an employee by reason of | |
the employment which is used by the employee to obtain money, goods or | |
services. | 35 |
(2) A credit-token provided for an employee by the employer is to be regarded as | |
provided by reason of the employment unless— | |
(a) the employer is an individual, and | |
(b) the provision is made in the normal course of the employer’s domestic, | |
family or personal relationships. | 40 |
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91 Provision for, or use by, member of employee’s family | |
For the purposes of this Chapter— | |
(a) any reference to a credit-token being provided for an employee | |
includes a reference to it being provided for a member of the | |
employee’s family, and | 5 |
(b) use of a credit-token by a member of an employee’s family is to be | |
treated as use of the token by the employee. | |
Meaning of "credit-token" | |
92 Meaning of “credit-token” | |
(1) In this Chapter “credit-token” means a credit card, debit card or other card, a | 10 |
token, a document or other object given to a person by another person (“X”) | |
who undertakes— | |
(a) on the production of it, to supply money, goods or services on credit, or | |
(b) if a third party (“Y”) supplies money, goods or services on its | |
production, to pay Y for what is supplied. | 15 |
(2) A card, token, document or other object can be a credit-token even if— | |
(a) some other action is required in addition to its production in order for | |
the money, goods or services to be supplied; | |
(b) X in paying Y may take a discount or commission. | |
(3) For the purposes of this section— | 20 |
(a) the use of an object given by X to operate a machine provided by X is to | |
be treated as its production to X, and | |
(b) the use of an object given by X to operate a machine provided by Y is to | |
be treated as its production to Y. | |
(4) A “credit-token” does not include a cash voucher or a non-cash voucher. | 25 |
Credit-tokens: exception | |
93 Credit-token made available to public generally | |
This Chapter does not apply to a credit-token if— | |
(a) it is of a kind made available to the public generally, and | |
(b) it is provided to the employee or a member of the employee’s family on | 30 |
no more favourable terms than to the public generally. | |
Benefit of credit-token treated as earnings | |
94 Benefit of credit-token treated as earnings | |
(1) On each occasion on which a credit-token to which this Chapter applies is used | |
by the employee in a tax year to obtain money, goods or services, the cash | 35 |
equivalent of the benefit of the token is to be treated as earnings from the | |
employment for that year. | |
(2) The cash equivalent is the difference between— | |
(a) the cost of provision, and | |
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(b) any part of that cost made good by the employee to the person | |
incurring it. | |
(3) In this section the “cost of provision” means the expense incurred— | |
(a) in or in connection with the provision of the money, goods or services | |
obtained on the occasion in question, and | 5 |
(b) by the person at whose cost they are provided. | |
(4) If a person incurs expense in or in connection with the provision of credit- | |
tokens for two or more employees as members of a group or class, the expense | |
incurred in respect of one of them is to be such part of that expense as is just | |
and reasonable. | 10 |
General supplementary provisions | |
95 Disregard for money, goods or services obtained | |
(1) This section applies if the cash equivalent of the benefit of a cash voucher, a | |
non-cash voucher or a credit-token— | |
(a) is to be treated as earnings from an employee’s employment under this | 15 |
Chapter, or | |
(b) would be so treated but for a dispensation given under section 96. | |
(2) Money, goods or services obtained— | |
(a) by the employee or another person in exchange for the cash voucher or | |
non-cash voucher, or | 20 |
(b) by the employee or a member of the employee’s family by use of the | |
credit-token, | |
are to be disregarded for the purposes of the Income Tax Acts. | |
(3) But the goods or services are not to be disregarded for the purposes of applying | |
sections 362 and 363 (deductions where non-cash voucher or credit-token | 25 |
provided). | |
(4) In the case of a transport voucher, the reference in subsection (2)(a) to the | |
services obtained in exchange for the voucher is to the passenger transport | |
services obtained by using it. | |
96 Dispensations relating to vouchers or credit-tokens | 30 |
(1) This section applies where a person (“P”) supplies the Inland Revenue with a | |
statement of the cases and circumstances in which— | |
(a) cash vouchers, | |
(b) non-cash vouchers, or | |
(c) credit-tokens, | 35 |
are provided for employees whether they are the employees of P or some other | |
person. | |
(2) If the Inland Revenue are satisfied that no additional tax is payable by virtue of | |
this Chapter by reference to the vouchers or credit-tokens mentioned in the | |
statement, they must give P a dispensation under this section. | 40 |
(3) A “dispensation” is a notice stating that the Inland Revenue agree that no | |
additional tax is payable by virtue of this Chapter by reference to the vouchers | |
or credit-tokens mentioned in the statement supplied by P. | |
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(4) If a dispensation is given under this section, nothing in this Chapter applies to | |
the provision or use of the vouchers or credit-tokens covered by the | |
dispensation. | |
(5) If in their opinion there is reason to do so, the Inland Revenue may revoke a | |
dispensation by giving a further notice to P. | 5 |
(6) That notice may revoke the dispensation from— | |
(a) the date when the dispensation was given, or | |
(b) a later date specified in the notice. | |
(7) If the notice revokes the dispensation from the date when the dispensation was | |
given— | 10 |
(a) any liability to tax that would have arisen if the dispensation had never | |
been given is to be treated as having arisen, and | |
(b) P and the employees in question must make all the returns which they | |
would have had to make if the dispensation had never been given. | |
(8) If the notice revokes the dispensation from a later date— | 15 |
(a) any liability to tax that would have arisen if the dispensation had | |
ceased to have effect on that date is to be treated as having arisen, and | |
(b) P and the employees in question must make all the returns which they | |
would have had to make if the dispensation had ceased to have effect | |
on that date. | 20 |
Chapter 5 | |
Taxable benefits: living accommodation | |
Living accommodation | |
97 Living accommodation to which this Chapter applies | |
(1) This Chapter applies to living accommodation provided for— | 25 |
(a) an employee, or | |
(b) a member of an employee’s family or household, | |
by reason of the employment. | |
(2) Living accommodation provided for any of those persons by the employer is | |
to be regarded as provided by reason of the employment unless— | 30 |
(a) the employer is an individual, and | |
(b) the provision is made in the normal course of the employer’s domestic, | |
family or personal relationships. | |
Exceptions | |
98 Accommodation provided by local authority | 35 |
This Chapter does not apply to living accommodation provided for an | |
employee if— | |
(a) the employer is a local authority, | |
(b) it is provided for the employee by the authority, and | |
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(c) the terms on which it is provided are no more favourable than those on | |
which similar accommodation is provided by the authority for persons | |
who are not their employees but whose circumstances are otherwise | |
similar to those of the employee. | |
99 Accommodation provided for performance of duties | 5 |
(1) This Chapter does not apply to living accommodation provided for an | |
employee if it is necessary for the proper performance of the employee’s duties | |
that the employee should reside in it. | |
(2) This Chapter does not apply to living accommodation provided for an | |
employee if— | 10 |
(a) it is provided for the better performance of the duties of the | |
employment, and | |
(b) the employment is one of the kinds of employment in the case of which | |
it is customary for employers to provide living accommodation for | |
employees. | 15 |
(3) But if the accommodation is provided by a company and the employee (“E”) is | |
a director of the company or of an associated company, the exception in | |
subsection (1) or (2) only applies if, in the case of each company of which E is a | |
director— | |
(a) E has no material interest in the company, and | 20 |
(b) either— | |
(i) E’s employment is as a full-time working director, or | |
(ii) the company is non-profit-making or is established for | |
charitable purposes only. | |
(4) “Non-profit-making” means that the company does not carry on a trade and its | 25 |
functions do not consist wholly or mainly in the holding of investments or | |
other property. | |
(5) A company is “associated” with another if— | |
(a) one has control of the other, or | |
(b) both are under the control of the same person. | 30 |
100 Accommodation provided as result of security threat | |
This Chapter does not apply to living accommodation provided for an | |
employee if— | |
(a) there is a special threat to the security of the employee, | |
(b) special security arrangements are in force, and | 35 |
(c) the employee resides in the accommodation as part of those | |
arrangements. | |
101 Chevening House | |
This Chapter does not apply to living accommodation provided for an | |
employee if the accommodation is— | 40 |
(a) Chevening House, or | |
(b) any other premises held on the trusts of the trust instrument set out in | |
the Schedule to the Chevening Estate Act 1959 (c. 49), | |
and the employee is a person nominated in accordance with those trusts. | |
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