Income Tax (Earnings and Pensions) Act 2003

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 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).

(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

(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,

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.

(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.

(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.

(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.