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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Exemptions for particular non-cash vouchers and credit-tokens

  • Section 268 Exemption of vouchers and tokens for incidental overnight expenses
  • Section 269 Exemption where benefits or money obtained in connection with taxable car or van or exempt heavy goods vehicle
  • Section 270 Exemption for small gifts of vouchers and tokens from third parties
  • Section 270A Limited exemption for qualifying childcare vouchers
  • Section 270AA Meaning of “eligible employee”
  • Section 270B Meaning of “relevant earnings amount” and “required time”
  1. Exemptions for particular non-cash vouchers and credit-tokens
  2. Meaning of “relevant earnings amount” and “required time”

Section 270B | Meaning of “relevant earnings amount” and “required time” F1

From legislation.gov.uk

(1)For the purposes of section 270A, the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, means—F1

(a)the aggregate of—F1

(i)the amount of any relevant earnings for the tax year from employment by the employer, andF1

(ii)any amounts treated under Chapters 2 to 12 of Part 3 as earnings from such employment, lessF1

(b)the aggregate of any excluded amounts.F1

(2)But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in subsection (1)(a) is the relevant multiple of that amount; and the relevant multiple is—F1

Formula

365RD

where RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.

(3)In subsection (1)(a) “relevant earnings” means—F1

(a)salary, wages or fees, andF1

(b)any other earnings specified in regulations made by the Treasury under this paragraph.F1

(4)In subsection (1)(b) “excluded amounts” means amounts specified in regulations made by the Treasury under this subsection.F1

(5)In section 270A “the required time”, in the case of an employee, means—F1

(a)if the employee joins the scheme under which the vouchers are provided at a time during the tax year, that time, andF1

(b)otherwise, the beginning of the tax year.F1

(6)For the purposes of subsection (5)(a) the employee is taken to join the scheme as soon as—F1

(a)the employer has agreed that vouchers will be provided under the scheme for the employee, andF1

(b)there is a child falling within section 270A(3)(a) or (b) in relation to the employee.F1

(7)The Treasury may by order amend this section.F1

Notes

  1. F1

    S. 270B inserted (with effect in accordance with Sch. 8 paras. 7-10 of the amending Act) by Finance Act 2011 (c. 11), Sch. 8 para. 3

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