Part 4Employment income: exemptions

Chapter 5Exemptions: recreational benefits

Recreational facilities

261Exemption of recreational benefits

(1)

No liability to income tax arises in respect of the provision to an employee or a member of an employee’s family or household of benefits within subsection (2).

(2)

The benefits are—

(a)

sporting or other recreational facilities which meet conditions A to C, and

(b)

a right or opportunity to make use of such facilities.

This is subject to section 262.

(3)

Condition A is that the facilities are available generally to the employees of the employer in question.

(4)

Condition B is that they are not available to members of the public generally.

(5)

Condition C is that they are used wholly or mainly by persons whose right or opportunity to use them is employment-related (whether or not by reference to the same employer).

(6)

A person’s right or opportunity to use facilities is “employment-related” if and only if—

(a)

it derives from the person being—

(i)

an employee or former employee, or

(ii)

a member or former member of the family or household of an employee or former employee,

of a particular employer, and

(b)

the facilities are provided so as to be available generally to that employer’s employees.