Part 4U.K.Employment income: exemptions

Chapter 11U.K.Miscellaneous exemptions

Awards and giftsU.K.

323Long service awardsU.K.

(1)No liability to income tax arises in respect of a long service award which meets the condition in subsection (3) if or to the extent that the chargeable amount does not exceed the permitted maximum.

(2)In subsection (1)—

(3)The condition is that the award must take the form of—

(a)tangible moveable property,

(b)shares in a company which is, or belongs to the same group as, the employer, or

(c)the provision of any other benefit except—

(i)a payment,

(ii)a cash voucher,

(iii)a credit-token,

(iv)securities,

(v)shares not within paragraph (b), or

(vi)an interest in or rights over securities or shares.

(4)Subsection (1) does not apply to an award (“the later award”) if another award to mark a particular period of service with the same employer has been made to the employee in the period of 10 years ending with the date on which the later award is made.

(5)For the purposes of this section, service is treated as being with the same employer if it is with two or more employers—

(a)each of whom is a successor or predecessor of the others, or

(b)one of whom is a company which belongs or has belonged to the same group as the others or a predecessor or successor of the others.

(6)In this section “group” means a body corporate and its 51% subsidiaries.