Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 4Taxable benefits: vouchers and credit-tokens

General supplementary provisions

96Dispensations relating to vouchers or credit-tokens

1

This section applies where a person (“P”) supplies the Inland Revenue with a statement of the cases and circumstances in which—

a

cash vouchers,

b

non-cash vouchers, or

c

credit-tokens,

are provided for employees whether they are the employees of P or some other person.

2

If the Inland Revenue are satisfied that no additional tax is payable by virtue of this Chapter by reference to the vouchers or credit-tokens mentioned in the statement, they must give P a dispensation under this section.

3

A “dispensation” is a notice stating that the Inland Revenue agree that no additional tax is payable by virtue of this Chapter by reference to the vouchers or credit-tokens mentioned in the statement supplied by P.

4

If a dispensation is given under this section, nothing in this Chapter applies to the provision or use of the vouchers or credit-tokens covered by the dispensation.

5

If in their opinion there is reason to do so, the Inland Revenue may revoke a dispensation by giving a further notice to P.

6

That notice may revoke the dispensation from—

a

the date when the dispensation was given, or

b

a later date specified in the notice.

7

If the notice revokes the dispensation from the date when the dispensation was given—

a

any liability to tax that would have arisen if the dispensation had never been given is to be treated as having arisen, and

b

P and the employees in question must make all the returns which they would have had to make if the dispensation had never been given.

8

If the notice revokes the dispensation from a later date—

a

any liability to tax that would have arisen if the dispensation had ceased to have effect on that date is to be treated as having arisen, and

b

P and the employees in question must make all the returns which they would have had to make if the dispensation had ceased to have effect on that date.