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(b) land or other premises belonging to, or enjoyed with, premises | |
so used, and | |
“vehicle” includes a ship, boat or other vessel, an aircraft and a hovercraft. | |
263 Power to alter benefits to which section 261 applies | |
The Treasury may by regulations provide that section 261— | 5 |
(a) does not apply to a benefit specified in the regulations, | |
(b) applies to a benefit so specified only where such conditions as the | |
regulations specify are met in relation to the terms on which, and the | |
persons to whom, it is provided, or | |
(c) applies in such cases as are so specified to— | 10 |
(i) facilities that do not meet the conditions in section 261(3) to (5), | |
or | |
(ii) a benefit within section 262. | |
Annual parties and functions | |
264 Annual parties and functions | 15 |
(1) This section applies to an annual party or similar annual function provided for | |
an employer’s employees and available to them generally or available | |
generally to those at a particular location. | |
(2) Where in the tax year only one annual party or similar annual function to | |
which this section applies is provided for the employer’s employees, or the | 20 |
employees in question, no liability to income tax arises in respect of its | |
provision if the cost per head of the party or function does not exceed £75. | |
(3) Where in the tax year two or more such parties or functions are so provided, | |
no liability to income tax arises in respect of the provision of one or more of | |
them (“the exempt party or parties”) if the cost per head of the exempt party or | 25 |
parties does not exceed £75 or £75 in aggregate. | |
(4) For the purposes of this section, the cost per head of a party or function is the | |
total cost of providing— | |
(a) the party or function, and | |
(b) any transport or accommodation incidentally provided for persons | 30 |
attending it (whether or not they are the employer’s employees), | |
divided by the number of those persons. | |
(5) That total cost includes any value added tax on the expenses incurred in | |
providing the party, function, transport or accommodation. | |
Entertainment | 35 |
265 Third party entertainment | |
(1) No liability to income tax arises in respect of the provision of entertainment for | |
an employee or a member of the employee’s family or household if conditions | |
A to C are met. | |
(2) Condition A is that the person providing the entertainment is not the employer | 40 |
or a person connected with the employer. | |
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(3) Condition B is that neither the employer nor a person connected with the | |
employer has directly or indirectly procured its provision. | |
(4) Condition C is that it is not provided— | |
(a) in recognition of particular services performed by the employee in the | |
course of the employment, or | 5 |
(b) in anticipation of particular services to be so performed. | |
(5) In this section “entertainment” includes hospitality of any kind. | |
Chapter 6 | |
Exemptions: non-cash vouchers and credit-tokens | |
General exemptions: use for exempt benefits | 10 |
266 Exemption of non-cash vouchers for exempt benefits | |
(1) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher if or to | |
the extent that the voucher is used to obtain anything the direct provision of | |
which would fall within— | 15 |
(a) section 237(1) (parking provision), | |
(b) section 246 (transport between home and work for disabled employees: | |
general), | |
(c) section 247 (provision of cars for disabled employees), | |
(d) section 248 (transport home: late night working and failure of car- | 20 |
sharing arrangements), or | |
(e) section 265 (third party entertainment). | |
(2) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the | |
voucher evidences the employee’s entitlement to use anything the direct | 25 |
provision of which would fall within— | |
(a) section 242 (works transport services), | |
(b) section 243 (support for public bus services), or | |
(c) section 244 (cycles and cyclist’s safety equipment). | |
(3) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | 30 |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the | |
voucher can only be used to obtain anything the direct provision of which | |
would fall within— | |
(a) section 245 (travelling and subsistence during public transport strikes), | |
(b) section 261 (exemption of recreational benefits), | 35 |
(c) section 264 (annual parties and functions), | |
(d) section 296 (armed forces’ leave travel facilities), or | |
(e) section 317 (subsidised meals). | |
(4) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the | 40 |
voucher evidences the employee’s entitlement to a benefit in respect of which | |
no charge arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual | |
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(4) liability to charge) because of regulations under section 210 (power to exempt | |
minor benefits). | |
(5) For the purposes of this section direct provision is taken to fall within a section | |
if it would do so if the employee were not in excluded employment. | |
267 Exemption of credit-tokens used for exempt benefits | 5 |
(1) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a credit-token if or to the | |
extent that the token is used to obtain anything the direct provision of which— | |
(a) would fall within one of the provisions specified in subsection (2), or | |
(b) would do so if the employee were not in excluded employment. | 10 |
(2) Those provisions are— | |
(a) section 237(1) (parking provision), | |
(b) section 245 (travelling and subsistence during public transport strikes), | |
(c) section 246 (transport between home and work for disabled employees: | |
general), | 15 |
(d) section 247 (provision of cars for disabled employees), | |
(e) section 248 (transport home: late night working and failure of car- | |
sharing arrangements), and | |
(f) section 265 (third party entertainment). | |
Exemptions for particular non-cash vouchers and credit-tokens | 20 |
268 Exemption of vouchers and tokens for incidental overnight expenses | |
(1) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher or a | |
credit-token if or to the extent that the voucher or token is used by an employee | |
to obtain goods, services or money if conditions A to C are met. | 25 |
(2) In the case of goods or services, condition A is that— | |
(a) obtaining them is incidental to the employee’s absence from the place | |
where the employee normally lives, and | |
(b) that absence is for a continuous period in relation to which the | |
overnight stay conditions are met (“the qualifying period”). | 30 |
(3) In the case of money, condition A is that— | |
(a) it is obtained for the purpose of obtaining goods or services, and | |
(b) obtaining them is incidental to such an absence during such a period. | |
(4) Condition B is that an amount would not be deductible under section 362 or | |
363 (deductions where non-cash voucher or credit-token provided) in respect | 35 |
of the cost of obtaining the goods or services. | |
(5) Condition C is that the exemption provisions total in respect of the qualifying | |
period does not exceed the permitted amount. | |
(6) In this section— | |
“the overnight stay conditions” has the same meaning as in section 240 | 40 |
(exemption of incidental overnight expenses and benefits) (see section | |
240(4)), and | |
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“the exemption provisions total” and “the permitted amount” have the | |
same meaning as in section 241 (incidental overnight expenses and | |
benefits: overall exemption limit) (see section 241(2) and (3)). | |
269 Exemption where benefits or money obtained in connection with taxable car | |
or van or exempt heavy goods vehicle | 5 |
(1) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher or a | |
credit-token if or to the extent that the voucher or token is used by the | |
employee or a member of the employee’s family for obtaining— | |
(a) goods or services in connection with a taxable car or van or an exempt | 10 |
heavy goods vehicle, or | |
(b) money which is spent on such goods or services. | |
(2) Subsection (1) applies where the goods in question are fuel for a car, but see | |
section 149(3) (by virtue of which such use of a voucher or token is treated as | |
the provision of the fuel for the purposes of section 149 (benefit of car fuel | 15 |
treated as earnings)). | |
(3) For the purposes of this section— | |
(a) “car” and “van” have the meaning given by section 115, and | |
(b) a car or van is “taxable” if the cash equivalent of the benefit of it is | |
treated as the employee’s earnings for the tax year in which the voucher | 20 |
or token is used under Chapter 6 of Part 3 (taxable benefits: cars, vans | |
and related benefits). | |
(4) For the purposes of this section— | |
(a) “heavy goods vehicle” has the same meaning as in section 238 (modest | |
private use of heavy goods vehicles), and | 25 |
(b) a heavy goods vehicle is “exempt” if it is made available in the tax year | |
to the employee in such circumstances that section 238 applies or | |
would apply if the employee were not in excluded employment. | |
270 Exemption for small gifts of vouchers and tokens from third parties | |
(1) No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable | 30 |
benefits: vouchers and credit-tokens) in respect of a non-cash voucher or a | |
credit-token if conditions A to C are met. | |
(2) Condition A is that the voucher or token is provided as a gift. | |
(3) Condition B is that it is only capable of being used to obtain goods. | |
(4) Condition C is that it meets conditions A to C and E in section 324 (general | 35 |
exemption of small gifts from third parties). | |
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Chapter 7 | |
Exemptions: removal benefits and expenses | |
Exemption of removal benefits and expenses: general | |
271 Limited exemption of removal benefits and expenses: general | |
(1) No liability to income tax in respect of earnings arises by virtue of— | 5 |
(a) the provision of removal benefits to which this section applies, or | |
(b) the payment or reimbursement of removal expenses to which this | |
section applies. | |
(2) Subsection (1) does not apply if (disregarding this section) the earnings are | |
general earnings to which either of the following sections applies— | 10 |
(a) section 22 (chargeable overseas earnings for year when employee | |
resident and ordinarily resident, but not domiciled, in UK), or | |
(b) section 26 (foreign earnings for year when employee resident, but not | |
ordinarily resident, in UK). | |
(3) Subsection (1) is subject to section 287 (limit on exemption). | 15 |
272 Removal benefits and expenses to which section 271 applies | |
(1) Benefits are removal benefits to which section 271 applies if— | |
(a) they are reasonably provided in connection with a change of the | |
employee’s residence which meets the conditions in section 273, | |
(b) they are provided on or before the limitation day (see section 274), and | 20 |
(c) they are within subsection (2) or one of the following provisions— | |
(i) section 277 (acquisition benefits and expenses), | |
(ii) section 278 (abortive acquisition benefits and expenses), | |
(iii) section 279 (disposal benefits and expenses), | |
(iv) section 280 (transporting belongings), | 25 |
(v) section 281 (travelling and subsistence), | |
(vi) section 285 (replacement of domestic goods). | |
(2) A benefit is within this subsection if it is a non-cash voucher, cash voucher or | |
credit-token used— | |
(a) to obtain goods or services the direct provision of which would be a | 30 |
benefit within one of the provisions specified in subsection (1)(c)(i) to | |
(vi), or | |
(b) to obtain money for the purpose of obtaining such goods or services or | |
meeting expenses within one of those provisions or section 284 | |
(bridging loan expenses). | 35 |
(3) Expenses are removal expenses to which section 271 applies if— | |
(a) they are reasonably incurred by the employee in connection with a | |
change of the employee’s residence which meets the conditions in | |
section 273, | |
(b) they are incurred on or before the limitation day, and | 40 |
(c) they are within one of the provisions referred to in subsection (1)(c)(i) | |
to (vi) or within section 284 (bridging loan expenses). | |
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