Part 4

Employment income: exemptions
Chapter 1

Exemptions: general

General exclusion from exemptions: optional remuneration arrangements
228A
1
A relevant exemption does not apply (whether to prevent liability to income tax from arising or to reduce liability to income tax) in respect of a benefit or facility so far as the benefit or facility is provided pursuant to optional remuneration arrangements.
2
For the purposes of subsection (1) it does not matter whether the relevant exemption would (apart from that subsection) have effect as an employment income exemption or an earnings-only exemption.
3
For the purposes of this section an exemption conferred by this Part is a “relevant exemption” unless it is—
a
a special case exemption (see subsection (4)), or
b
an excluded exemption (see subsection (5)).
4
“
Special case exemption
” means an exemption conferred by any of the following provisions—
a
section 289A (exemption for paid or reimbursed expenses);
b
section 289D (exemption for other benefits);
c
section 308B (independent advice in respect of conversions and transfers of pension scheme benefits);
d
section 312A (limited exemption for qualifying bonus payments);
e
section 317 (subsidised meals);
f
section 320C (recommended medical treatment);
g
section 323A (trivial benefits provided by employers).
5
“
Excluded exemption
” means an exemption conferred by any of the following provisions—
a
section 239 (payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles);
b
section 244 (cycles and cyclist's safety equipment);
c
section 266(2)(c) (non-cash voucher regarding entitlement to exemption within section 244);
d
section 270A (limited exemption for qualifying childcare vouchers);
e
section 307 (death or retirement provision), so far as relating to provision made for retirement benefits;
f
section 308 (exemption of contribution to registered pension scheme);
g
section 308A (exemption of contributions to overseas pension scheme);
h
section 308C (provision of pensions advice);
i
section 309 (limited exemptions for statutory redundancy payments);
j
section 310 (counselling and other outplacement services);
k
section 311 (retraining courses);
l
section 318 (childcare: exemption for employer-provided care);
m
section 318A (childcare: limited exemption for other care).
6
In subsection (5) “
retirement benefit
” has the meaning that would be given by subsection (2) of section 307 if “or death” were omitted in both places where it occurs in that subsection.
7
In this section “
benefit or facility
” includes anything which constitutes employment income or in respect of which employment income is treated as arising to the employee (regardless of its form and the manner of providing it).
8
In this section “
optional remuneration arrangements
” has the same meaning as in the benefits code (see section 69A).
9
The Treasury may by order amend subsections (4) and (5) by adding or removing an exemption conferred by Part 4.
S. 228A inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 49
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)