Section 20 | Employment income: miscellaneous exemptions

(1)Chapter 11 of Part 4 of ITEPA 2003 (employment income: miscellaneous exemptions) is amended in accordance with subsections (2) to (4).

(2)After section 316 insert—

316ZAAccommodation, supplies and services used in employment duties: payment or reimbursement of expenses

(1)No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee on behalf of the employer in respect of the provision for the employee of accommodation, supplies or services if conditions A and B are met.

(2)Condition A is that, at the time the accommodation, supplies or services are first provided, the intention of the employer is that—

(a)they will be used by the employee in performing duties of the employment, and

(b)any use of them for private purposes by the employee or members of the employee’s family or household will not be significant.

(3)Condition B is that where the provision is otherwise than on premises occupied by the employer—

(a)its sole purpose is to enable the employee to perform the duties of the employee’s employment, and

(b)what is provided is not an excluded benefit.

(4)In this section “for private purposes” and “excluded benefit” have the same meaning as in section 316.

(3)In section 320A (eye tests and special corrective appliances)—

(a)after subsection (1) insert—

(1A)No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee in respect of the provision for the employee of a test or appliances of the kind mentioned in subsection (1) if conditions A and B are met.

;

(b)in subsection (3), after “regulations” insert “, whether by way of provision under subsection (1) or payment or reimbursement under subsection (1A)”.

(4)After section 320C insert—

320DFlu vaccinations

(1)No liability to income tax arises in respect of the provision for an employee of an influenza vaccination if the provision is not made pursuant to relevant salary sacrifice arrangements.

(2)No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee in respect of the provision for the employee of an influenza vaccination if the payment or reimbursement is not made pursuant to relevant salary sacrifice arrangements.

(3)In this section “relevant salary sacrifice arrangements” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of an influenza vaccination or the payment or reimbursement of the cost of such a vaccination.

(5)In section 266(3) of ITEPA 2003 (exemption of non-cash vouchers for exempt benefits)—

(a)omit the “or” after paragraph (f);

(b)after paragraph (g) insert

(h)section 320D (flu vaccinations).

(6)In section 267(2) of ITEPA 2003 (exemption of credit-tokens used for exempt benefits)—

(a)omit the “and” after paragraph (h);

(b)after paragraph (i) insert

(j)section 320D (flu vaccinations).

(7)The amendments made by this section have effect in relation to the tax year 2026-2027 and subsequent tax years.