Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 4Taxable benefits: vouchers and credit-tokens
General supplementary provisions
95Disregard 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 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
(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 provided).
F1(3A)
In the case of a childcare voucher, the reference in subsection (2)(a) to the services obtained in exchange for the voucher is to the provision of care for a child obtained by using it.
(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.
96Dispensations relating to vouchers or credit-tokens
(1)
This section applies where a person (“P”) supplies F2an officer of Revenue and Customs with a statement of the cases and circumstances in which—
(a)
cash vouchers,
(b)
non-cash vouchers, or
(c)
credit-tokens,
are provided for employees whether they are the employees of P or some other person.
(2)
(3)
(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, F2an officer of Revenue and Customs may revoke a dispensation by giving a further notice to P.
(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—
(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—
(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.
F696APower to exempt use of non-cash vouchers or credit-tokens to obtain exempt benefits
(1)
The Treasury may by regulations provide for exemption from any liability that would otherwise arise by virtue of this Chapter in respect of—
(a)
non-cash vouchers which are or can be used to obtain specified exempt benefits, or which evidence an employee's entitlement to specified exempt benefits;
(b)
credit-tokens which are used to obtain specified exempt benefits.
(2)
In this section—
“exempt benefit” means a benefit the direct provision of which is exempted from liability to income tax by a provision of Part 4 (employment income: exemptions), and
“specified” means specified in the regulations.
(3)
Regulations under this section may operate by amending section 266 (exemption of non-cash vouchers for exempt benefits) or section 267 (exemption of credit-tokens used for exempt benefits).