Income Tax (Earnings and Pensions) Act 2003

Workplace meals

317 Subsidised meals

(1) No liability to income tax arises in respect of the provision for an employee by the employer of free or subsidised meals if—

(a) they are provided in a canteen where meals are provided for the employer’s employees generally or generally to those at a particular location, or

(b) they are provided on the employer’s business premises and conditions A to C are met.

(2) Condition A is that the meals are provided on a reasonable scale.

(3) Condition B is that all the employer’s employees or all of them at a particular location may obtain one or both of the following—

(a) a free or subsidised meal, or

(b) a free or subsidised meal voucher or token.

(4) Condition C is that if the meals are provided in the restaurant or dining room of a hotel or a catering or similar business at a time when meals are being served to the public—

(a) part of the restaurant or dining room is designated for the use of employees only, and

(b) the meals are taken in that part.

(5) In this section “free or subsidised meal voucher or token” means a voucher, ticket, pass or other document or token which—

(a) is intended to enable a person to obtain a meal, and

(b) is provided to the employee free of charge or for less than the cost of the meals to be obtained by it.

(6) In this section “meals” includes light refreshments.