Section 266 — Income Tax (Earnings and Pensions) Act 2003: Exemption of non-cash vouchers for exempt benefits

Exemption of non-cash vouchers for exempt benefits 266 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), ... e section 265 (third party entertainment) , or f section 320C (recommended medical treatment);

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), ... c section 244 (cycles and cyclist’s safety equipment), or d section 319 (mobile telephones).

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), ... e section 317 (subsidised meals) , ... f section 320A (eye tests and special corrective appliances) ... g section 320B (health screening and medical check-ups) , or h section 320D (flu vaccinations).

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 lower-paid employment as a minister of religion .