Section 265 — Income Tax (Earnings and Pensions) Act 2003: Third party entertainment

Third party entertainment 265 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.