Part 4Employment income: exemptions
Chapter 5Exemptions: recreational benefits
Entertainment
265Third party entertainment
1
No liability to income tax arises in respect of the provision of entertainment for an employee or a member of the employee’s family or household if conditions A to C are met.
2
Condition A is that the person providing the entertainment is not the employer or a person connected with the employer.
3
Condition B is that neither the employer nor a person connected with the employer has directly or indirectly procured its provision.
4
Condition C is that it is not provided—
a
in recognition of particular services performed by the employee in the course of the employment, or
b
in anticipation of particular services to be so performed.
5
In this section “entertainment” includes hospitality of any kind.