Part 4Employment income: exemptions
Chapter 6Exemptions: non-cash vouchers and credit-tokens
Exemptions for particular non-cash vouchers and credit-tokens
268Exemption of vouchers and tokens for incidental overnight expenses
(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 or a credit-token if or to the extent that the voucher or token is used by an employee to obtain goods, services or money if conditions A to C are met.
(2)
In the case of goods or services, condition A is that—
(a)
obtaining them is incidental to the employee’s absence from the place where the employee normally lives, and
(b)
that absence is for a continuous period in relation to which the overnight stay conditions are met (“the qualifying period”).
(3)
In the case of money, condition A is that—
(a)
it is obtained for the purpose of obtaining goods or services, and
(b)
obtaining them is incidental to such an absence during such a period.
(4)
Condition B is that an amount would not be deductible under section 362 or 363 (deductions where non-cash voucher or credit-token provided) in respect of the cost of obtaining the goods or services.
(5)
Condition C is that the exemption provisions total in respect of the qualifying period does not exceed the permitted amount.
(6)
In this section—
“the overnight stay conditions” has the same meaning as in section 240 (exemption of incidental overnight expenses and benefits) (see section 240(4)), and
“the exemption provisions total” and “the permitted amount” have the same meaning as in section 241 (incidental overnight expenses and benefits: overall exemption limit) (see section 241(2) and (3)).