PART 4 continued CHAPTER 3 continued
(5) Condition B is that the car is made available on terms prohibiting its use otherwise than for—
(a) the employee’s business travel, or
(b) transport for the employee for the purpose of—
(i) ordinary commuting or travel between any two places that is for practical purposes substantially ordinary commuting, or
(ii) travel to a place the expenses of travelling to which would be within one of the training exemption provisions if the employer paid them.
(6) Condition C is that in the tax year the car is only used in accordance with those terms.
(7) In this section—
“business travel” has the same meaning as in Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits) (see section 171(1)),
“disabled employee” has the same meaning as in section 246 (see subsection (4)), and
“the training exemption provisions” means—
section 250 (exemption of work-related training provision),
section 255 (exemption for contributions to individual learning account training), and
section 311 (retraining courses).
(8) Section 138(4) (when a car has automatic transmission) applies for the purposes of this section as it applies for the purposes of section 138.
(1) No liability to income tax arises in respect of the provision of transport or the payment or reimbursement of expenses incurred on transport if—
(a) the transport is for a journey from the employee’s workplace to the employee’s home,
(b) the late working conditions or the car-sharing failure conditions are met, and
(c) the number of previous occasions in the tax year on which the provision of transport within this section or the payment or reimbursement of expenses within this section has occurred is lower than 60.
(2) The late working conditions are that—
(a) the journey is made on an occasion when the employee is required to work later than usual and until at least 9 p.m.,
(b) such occasions occur irregularly,
(c) by the time when the employee ceases work—
(i) public transport has ceased to be available for the journey, or
(ii) it would not be reasonable to expect the employee to use it, and
(d) the transport is by taxi or similar private road transport.
(3) The car-sharing failure conditions are that—
(a) the employee regularly travels to work in a car with one or more other employees of the employee’s employer under arrangements for the sharing of the car with them, and
(b) the journey is made on an occasion when the employee is unable to use the car because of unforeseen and exceptional circumstances.
In this Chapter—
“car” and “van” have the same meaning as in Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits) (see section 115), except that for the purposes of sections 246 and 247 (transport for the disabled) any adaptation of a car for the employee’s special needs is to be disregarded,
“ordinary commuting” has the same meaning as in section 338 (travel for necessary attendance) (see subsection (3)),
“qualifying journey”, in relation to an employee, means the whole or part of a journey—
between the employee’s home and workplace,
between one workplace and another,
in connection with the performance of the duties of the employment, and
“workplace” and “permanent workplace” have the meaning given by section 339.
(1) No liability to income tax arises by virtue of—
(a) the provision for an employee of work-related training or any benefit incidental to such training, or
(b) the payment or reimbursement to or in respect of an employee of—
(i) the cost of work-related training or of any benefit incidental to such training, or
(ii) any costs of a kind specified in subsection (2) in respect of such training.
(2) The costs are—
(a) costs which are incidental to the employee undertaking the training,
(b) expenses incurred in connection with an examination or other assessment of what the employee has gained from the training, and
(c) the cost of obtaining any qualification, registration or award to which the employee becomes or may become entitled as a result of the training or such an examination or other assessment.
(1) In this Chapter “work-related training”, in relation to an employee, means a training course or other activity designed to impart, instil, improve or reinforce any knowledge, skills or personal qualities which—
(a) are likely to prove useful to the employee when performing the duties of the employment or a related employment, or
(b) will qualify or better qualify the employee—
(i) to perform those duties, or
(ii) to participate in any charitable or voluntary activities that are available to be performed in association with the employment or a related employment.
(2) For this purpose “related employment”, in relation to an employee, means another employment with the same employer, or with a person connected with the employer, which the employee—
(a) is to hold,
(b) has a serious opportunity of holding, or
(c) can realistically expect to have a serious opportunity of holding in due course.
(1) Where travel or subsistence is provided or the costs of travel or subsistence are paid or reimbursed, section 250 does not apply except to the extent that the travel meets condition A or B or the subsistence meets condition B.
(2) Condition A is that, on the assumptions in subsection (4), mileage allowance relief under Chapter 2 of this Part would be available for the travel if no mileage allowance payments had been made.
(3) Condition B is that, on those assumptions, the expenses of the travel or subsistence would be deductible under Part 5.
(4) The assumptions are—
(a) that the employee undertook the training as one of the duties of the employment, and
(b) that the employee incurred and paid the expenses.
(5) In this section—
“mileage allowance payments” has the meaning given by section 229(2), and
“subsistence” includes food, drink and temporary living accommodation.
(1) Section 250 does not apply if or to the extent that the facilities or other benefits that are provided or the costs of which are paid or reimbursed are provided to the employee for one or more of the following purposes.
(2) They are—
(a) enabling the employee to enjoy the facilities or benefits for entertainment or recreational purposes which are unconnected,
(b) providing the employee with an unconnected inducement to remain in or accept an employment with the employer or a person connected with the employer, and
(c) rewarding the employee for performing duties of the employment or performing them in a particular way.
(3) In subsection (2)(a) the reference to enjoying facilities or benefits for entertainment or recreational purposes includes a reference to enjoying them in the course of a leisure activity.
(4) In subsection (2)(a) and (b) “unconnected” means unconnected with imparting, instilling, improving or reinforcing knowledge, skills or personal qualities within section 251(1).
(1) Section 250 does not apply if the benefit that is provided or the cost of which is paid or reimbursed is, or is the use of, an asset that is not a training-related asset.
(2) “Training-related asset”, in relation to work-related training provided to an employee, means—
(a) an asset provided for use only—
(i) in the course of the training, or
(ii) in the course of the training and in the performance of the duties of the employee’s employment,
(b) training materials provided in the course of the training, or
(c) something made by the employee in the course of the training or incorporated into something so made.
(3) For this purpose, “training materials” includes stationery, books or other written material, audio or video tapes, compact disks or floppy disks.
(1) No liability to income tax in respect of income from a current or former employment arises by virtue of—
(a) the provision to a person within subsection (2) (“the employee”) of individual learning account training that is given by a person who is not the employee’s employer or former employer,
(b) any payment to the person giving the training in respect of the cost of that provision,
(c) the provision to the employee of any benefit incidental to such training, or
(d) the payment or reimbursement of any costs in respect of such training of a kind specified in subsection (3).
(2) A person is within this subsection if the person either—
(a) holds an account that qualifies under section 104 of the Learning and Skills Act 2000 (c. 21), or
(b) is a party to arrangements that qualify under section 105 or 106 of that Act or section 2 of the Education and Training (Scotland) Act 2000 (asp. 8).
(3) The costs are—
(a) costs which are incidental to the employee undertaking the training,
(b) expenses incurred in connection with an examination or other assessment of what the employee has gained from the training, and
(c) the cost of obtaining any qualification, registration or award to which the employee becomes or may become entitled as a result of the training or such an examination or other assessment.
In this Chapter “individual learning account training” means training or education of a kind that qualifies for grants authorised by—
(a) regulations under section 108 or 109 of the Learning and Skills Act 2000 (c. 21), or
(b) regulations under section 1 of the Education and Training (Scotland) Act 2000.
(1) Where travel or subsistence is provided or the costs of travel or subsistence are paid or reimbursed, section 255 does not apply except to the extent that the travel meets condition A or B or the subsistence meets condition B.
(2) Condition A is that, on the assumptions in subsection (4), mileage allowance relief under Chapter 2 of this Part would be available for the travel if no mileage allowance payments had been made.
(3) Condition B is that, on those assumptions, the expenses of the travel or subsistence would be deductible under Part 5.
(4) The assumptions are—
(a) that the employee undertook the training as one of the duties of the employment, and
(b) that the employee incurred and paid the expenses.
(5) In this section—
“mileage allowance payments” has the meaning given by section 229(2), and
“subsistence” includes food, drink and temporary living accommodation.
(1) Section 255 does not apply if or to the extent that the facilities or other benefits that are provided or made available, or the costs of which are paid or reimbursed, are provided or made available for either or both of the following purposes.
(2) They are—
(a) enabling the employee or former employee to enjoy the facilities or benefits for entertainment or recreational purposes, and
(b) rewarding the employee or former employee for performing duties of the employment or former employment or performing them in a particular way.
(3) In subsection (2)(a) the reference to enjoying facilities or benefits for entertainment or recreational purposes includes a reference to enjoying them in the course of a leisure activity.
(1) Section 255 does not apply if the benefit that is provided, or the use of which is provided, or the cost of which is paid or reimbursed is an asset that is not a training-related asset.
(2) “Training-related asset”, in relation to individual learning account training provided to an employee or former employee, means—
(a) an asset provided—
(i) for use only in the course of the training, or
(ii) for use in the course of the training and in the performance of the duties of the employee’s employment, but not to any significant extent for any other use, or
(b) training materials provided in the course of the training, or
(c) something made by the employee or former employee in the course of the training or incorporated into something so made.
(3) For this purpose “training materials” includes stationery, books or other written material, audio or video tapes, compact disks or floppy disks.
(1) Section 255(1) only applies if any expenditure involved in making the provision, the payment or the reimbursement is incurred in giving effect to existing arrangements providing—
(a) for the person incurring it to contribute to costs arising from the undertaking of individual learning account training by the employer’s employees or former employees, and
(b) for such contributions to be generally available, on similar terms, to the employer’s employees at that time.
(2) In subsection (1) “existing arrangements” means arrangements in place when the agreement to incur the expenditure was made.
(3) The Treasury may by regulations make provision specifying the persons or other entities under whom Crown servants are to be treated for the purposes of this section as holding employment.
(4) Such regulations may—
(a) treat a description of Crown servants (or two or more such descriptions taken together) as an entity for the purposes of the regulations, and
(b) make different provision for different descriptions of Crown servants.
(5) In this section “Crown servant” means a person holding an employment under the Crown.
(1) No liability to income tax arises in respect of the provision to an employee or a member of an employee’s family or household of benefits within subsection (2).
(2) The benefits are—
(a) sporting or other recreational facilities which meet conditions A to C, and
(b) a right or opportunity to make use of such facilities.
This is subject to section 262.
(3) Condition A is that the facilities are available generally to the employees of the employer in question.
(4) Condition B is that they are not available to members of the public generally.
(5) Condition C is that they are used wholly or mainly by persons whose right or opportunity to use them is employment-related (whether or not by reference to the same employer).
(6) A person’s right or opportunity to use facilities is “employment-related” if and only if—
(a) it derives from the person being—
(i) an employee or former employee, or
(ii) a member or former member of the family or household of an employee or former employee,
of a particular employer, and
(b) the facilities are provided so as to be available generally to that employer’s employees.
(1) Section 261 (exemption of recreational benefits) does not apply to the following benefits—
(a) an interest in or the use of any of the following—
(i) a mechanically propelled vehicle,
(ii) holiday or other overnight accommodation, or
(iii) facilities which include, or are provided in association with, a right or opportunity to make use of holiday or overnight accommodation,
(b) facilities provided on domestic premises, or
(c) a right or opportunity to make use of facilities within paragraph (a) or (b).
(2) In this section—
“domestic premises” means—
premises used wholly or mainly as a private dwelling, or
land or other premises belonging to, or enjoyed with, premises so used, and
“vehicle” includes a ship, boat or other vessel, an aircraft and a hovercraft.
The Treasury may by regulations provide that section 261—
(a) does not apply to a benefit specified in the regulations,
(b) applies to a benefit so specified only where such conditions as the regulations specify are met in relation to the terms on which, and the persons to whom, it is provided, or
(c) applies in such cases as are so specified to—
(i) facilities that do not meet the conditions in section 261(3) to (5), or
(ii) a benefit within section 262.
(1) This section applies to an annual party or similar annual function provided for an employer’s employees and available to them generally or available generally to those at a particular location.
(2) Where in the tax year only one annual party or similar annual function to which this section applies is provided for the employer’s employees, or the employees in question, no liability to income tax arises in respect of its provision if the cost per head of the party or function does not exceed £75.
(3) Where in the tax year two or more such parties or functions are so provided, no liability to income tax arises in respect of the provision of one or more of them (“the exempt party or parties”) if the cost per head of the exempt party or parties does not exceed £75 or £75 in aggregate.
(4) For the purposes of this section, the cost per head of a party or function is the total cost of providing—
(a) the party or function, and
(b) any transport or accommodation incidentally provided for persons attending it (whether or not they are the employer’s employees),
divided by the number of those persons.
(5) That total cost includes any value added tax on the expenses incurred in providing the party, function, transport or accommodation.
(1) No liability to income tax arises in respect of the provision of entertainment for an employee or a member of the employee’s family or household if conditions A to C are met.
(2) Condition A is that the person providing the entertainment is not 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 its provision.
(4) Condition C is that it is not provided—
(a) in recognition of particular services performed by the employee in the course of the employment, or
(b) in anticipation of particular services to be so performed.
(5) In this section “entertainment” includes hospitality of any kind.
(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 if or to the extent that the voucher is used to obtain anything the direct provision of which would fall within—
(a) section 237(1) (parking provision),
(b) section 246 (transport between home and work for disabled employees: general),
(c) section 247 (provision of cars for disabled employees),
(d) section 248 (transport home: late night working and failure of car-sharing arrangements), or
(e) section 265 (third party entertainment).
(2) 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 if the voucher evidences the employee’s entitlement to use anything the direct provision of which would fall within—
(a) section 242 (works transport services),
(b) section 243 (support for public bus services), or
(c) section 244 (cycles and cyclist’s safety equipment).
(3) 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 if the voucher can only be used to obtain anything the direct provision of which would fall within—
(a) section 245 (travelling and subsistence during public transport strikes),
(b) section 261 (exemption of recreational benefits),
(c) section 264 (annual parties and functions),
(d) section 296 (armed forces' leave travel facilities), or
(e) section 317 (subsidised meals).
(4) 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 if the voucher evidences the employee’s entitlement to a benefit in respect of which no charge arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) because of regulations under section 210 (power to exempt minor benefits).
(5) For the purposes of this section direct provision is taken to fall within a section if it would do so if the employee were not in excluded employment.
(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 credit-token if or to the extent that the token is used to obtain anything the direct provision of which—
(a) would fall within one of the provisions specified in subsection (2), or
(b) would do so if the employee were not in excluded employment.
(2) Those provisions are—
(a) section 237(1) (parking provision),
(b) section 245 (travelling and subsistence during public transport strikes),
(c) section 246 (transport between home and work for disabled employees: general),
(d) section 247 (provision of cars for disabled employees),
(e) section 248 (transport home: late night working and failure of car-sharing arrangements), and
(f) section 265 (third party entertainment).
(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)).
(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 the employee or a member of the employee’s family for obtaining—
(a) goods or services in connection with a taxable car or van or an exempt heavy goods vehicle, or
(b) money which is spent on such goods or services.
(2) Subsection (1) applies where the goods in question are fuel for a car, but see section 149(3) (by virtue of which such use of a voucher or token is treated as the provision of the fuel for the purposes of section 149 (benefit of car fuel treated as earnings)).
(3) For the purposes of this section—
(a) “car” and “van” have the meaning given by section 115, and
(b) a car or van is “taxable” if the cash equivalent of the benefit of it is treated as the employee’s earnings for the tax year in which the voucher or token is used under Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits).
(4) For the purposes of this section—
(a) “heavy goods vehicle” has the same meaning as in section 238 (modest private use of heavy goods vehicles), and
(b) a heavy goods vehicle is “exempt” if it is made available in the tax year to the employee in such circumstances that section 238 applies or would apply if the employee were not in excluded employment.
(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 conditions A to C are met.
(2) Condition A is that the voucher or token is provided as a gift.
(3) Condition B is that it is only capable of being used to obtain goods.
(4) Condition C is that it meets conditions A to C and E in section 324 (general exemption of small gifts from third parties).