Part 4

Employment income: exemptions
Chapter 6

Exemptions: non-cash vouchers and credit-tokens

Exemptions for particular non-cash vouchers and credit-tokens

Exemption of vouchers and tokens for incidental overnight expenses
268
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)).