Section 261 — Income Tax (Earnings and Pensions) Act 2003: Exemption of recreational benefits

Exemption of recreational benefits 261 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.