Part 4

Employment income: exemptions
Chapter 11

Miscellaneous exemptions

Awards and gifts

Small gifts from third parties
324
1
No liability to income tax arises in respect of a gift provided for an employee or a member of the employee’s family or household if conditions A to E are met.
2
Condition A is that the gift is not provided by the employer or a person connected with the employer.
3
Condition B is that neither the employer nor a person connected with the employer has directly or indirectly procured the gift.
4
Condition C is that the gift is not made in recognition of particular services performed by the employee in the course of the employment or in anticipation of such services.
5
Condition D is that the gift is not cash or securities or the use of a service.
6
Condition E is that the total cost to the donor of all the eligible gifts in respect of the employee in question during the tax year does not exceed £150.
7
For the purposes of condition E, the total cost to the donor includes any value added tax payable on the supply of the gifts to the donor, whether or not the donor is entitled to a credit or repayment in respect of that tax.
8
In this section “eligible gifts” means all gifts which—
a
meet conditions A to D, or
b
are non-cash vouchers or credit-tokens and meet—
i
conditions A to C, and
ii
conditions A and B in section 270 (exemption for small gifts of vouchers and tokens from third parties).
9
Subsection (1) does not apply to non-cash vouchers and credit-tokens (but see section 270 which makes provision for a corresponding exemption for them).