Part 4

Employment income: exemptions
Chapter 11

Miscellaneous exemptions

Workplace meals

Subsidised meals
317
1
No liability to income tax arises in respect of the provision for an employee by the employer of free or subsidised meals if they are provided—
a
in a canteen, or
b
on the employer’s business premises,
and conditions A to
D
are met.
2
Condition A is that the meals are provided on a reasonable scale.
3
Condition B is that all the employer’s employees or all of them at a particular location may obtain one or both of the following—
a
a free or subsidised meal, or
b
a free or subsidised meal voucher or token.
4
Condition C is that if the meals are provided in the restaurant or dining room of a hotel or a catering or similar business at a time when meals are being served to the public—
a
part of the restaurant or dining room is designated for the use of employees only, and
b
the meals are taken in that part.
4A
Condition D is that the provision is not pursuant to—
a
relevant salary sacrifice arrangements, or
b
relevant flexible remuneration arrangements.
5
In this section “free or subsidised meal voucher or token” means a voucher, ticket, pass or other document or token which—
a
is intended to enable a person to obtain a meal, and
b
is provided to the employee free of charge or for less than the cost of the meals to be obtained by it.
5A
In this section—
- “
relevant salary sacrifice arrangements
” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of free or subsidised meals;
- “
relevant flexible remuneration arrangements
” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with free or subsidised meals rather than receive some other description of employment income.
6
In this section “meals” includes light refreshments.
S. 317(4A) inserted (with effect for the tax year 2011-12 and subsequent tax years in accordance with s. 60(5) of the amending Act) by Finance Act 2010 (c. 13), s. 60(3)
S. 317(1) substituted (with effect in accordance with Sch. 17 para. 1(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 17 para. 1(1)
Word in s. 317(1) substituted (with effect for the tax year 2011-12 and subsequent tax years in accordance with s. 60(5) of the amending Act) by Finance Act 2010 (c. 13), s. 60(2)
S. 317(5A) inserted (with effect for the tax year 2011-12 and subsequent tax years in accordance with s. 60(5) of the amending Act) by Finance Act 2010 (c. 13), s. 60(4)
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)