Part 4Employment income: exemptions

Chapter 11Miscellaneous exemptions

Workplace meals

317Subsidised 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.