Search Legislation

Income Tax (Earnings and Pensions) Act 2003

Section 76: Sickness benefits-related voucher

300.This section modifies the meaning of “cash voucher” where the expense incurred by the provider of the voucher includes costs of providing sickness benefits and the sum of money for which the voucher can be exchanged is substantially less than the total cost to the provider. It derives from section 143(4) of ICTA.

301.The modification effectively removes the sickness benefits element when testing whether the voucher is a cash voucher.

302.Subsection (1) sets out the circumstances in which the section applies.

303.Subsection (2) provides two formulae to be used in determining whether the voucher is a cash voucher. The use of the formulae is best illustrated by examples:-

Example 1

The exchange sum E is £60.

The provision expense PE is £150

The cost of providing the sickness benefits is £90.

£150(Pe) – £60(E) = £90

The cost of providing the sickness benefits is £90, so D = £90.

Putting these values into the formula: £150(PE) – £90(D) = £60

£60(E) = £150(PE) – £90(D), so the voucher is a cash voucher.

Back to top


Print Options


Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.


More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources