Part 4Employment income: exemptions

Chapter 6Exemptions: non-cash vouchers and credit-tokens

General exemptions: use for exempt benefits

266Exemption of non-cash vouchers for exempt benefits

1

No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if or to the extent that the voucher is used to obtain anything the direct provision of which would fall within—

a

section 237(1) (parking provision),

b

section 246 (transport between home and work for disabled employees: general),

c

section 247 (provision of cars for disabled employees),

d

section 248 (transport home: late night working and failure of car-sharing arrangements), or

e

section 265 (third party entertainment).

2

No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher evidences the employee’s entitlement to use anything the direct provision of which would fall within—

a

section 242 (works transport services),

b

section 243 (support for public bus services), F1...

c

section 244 (cycles and cyclist’s safety equipment), F2or

d

section 319 (mobile telephones).

3

No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher can only be used to obtain anything the direct provision of which would fall within—

a

section 245 (travelling and subsistence during public transport strikes),

b

section 261 (exemption of recreational benefits),

c

section 264 (annual parties and functions),

d

section 296 (armed forces' leave travel facilities), F3...

e

section 317 (subsidised meals) F4, F5...

f

section 320A (eye tests and special corrective appliances)F6or

g

section 320B (health screening and medical check-ups).

4

No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher evidences the employee’s entitlement to a benefit in respect of which no charge arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) because of regulations under section 210 (power to exempt minor benefits).

5

For the purposes of this section direct provision is taken to fall within a section if it would do so if the employee were not in excluded employment.