Section 268 | Exemption of vouchers and tokens for incidental overnight expenses

(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 or a credit-token if or to the extent that the voucher or token is used by an employee to obtain goods, services or money if conditions A to C are met.

(2)In the case of goods or services, condition A is that—

(a)obtaining them is incidental to the employee’s absence from the place where the employee normally lives, and

(b)that absence is for a continuous period in relation to which the overnight stay conditions are met (“the qualifying period”).

(3)In the case of money, condition A is that—

(a)it is obtained for the purpose of obtaining goods or services, and

(b)obtaining them is incidental to such an absence during such a period.

(4)Condition B is that an amount would not be deductible under section 362 or 363 (deductions where non-cash voucher or credit-token provided) in respect of the cost of obtaining the goods or services.

(5)Condition C is that the exemption provisions total in respect of the qualifying period does not exceed the permitted amount.

(6)In this section—