13 Exemption for trivial benefits provided by employers
Finance Act 2016 (2016 c 24) | Legislation

13  Exemption for trivial benefits provided by employers

(1)     ITEPA 2003 is amended as follows.

(2)     After section 323 insert—

“323A Trivial benefits provided by employers

(1)     No liability to income tax arises in respect of a benefit provided by, or on behalf of, an employer to an employee or a member of the employee's family or household if—

(a)     conditions A to D are met, or

(b)     in a case where subsection (2) applies, conditions A to E are met.

(2)     This subsection applies where—

(a)     the employer is a close company, and

(b)     the employee is—

(i)     a person who is a director or other office-holder of the employer, or

(ii)     a member of the family or household of such a person.

(3)     Condition A is that the benefit is not cash or a cash voucher within the meaning of section 75.

(4)     Condition B is that the benefit cost of the benefit does not exceed £50.

(5)     In this section “benefit cost”, in relation to a benefit, means—

(a)     the cost of providing the benefit, or

(b)     if the benefit is provided to more than one person and the nature of the benefit

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