Section 261 | Exemption of recreational benefits

(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.