Draft Finance Bill 2016 Clause 9 Income Tax: employment intermediaries and relief for travel and subsistence - CIOT comments

6 Jul 2017

The exemption is subject to certain qualifying conditions, such as a £50 cap on individual BIKs to employees and an annual cap of £300 per employee (but the annual cap only applies where the employee is a director or other office holder of a close company).

While the CIOT believes that the draft legislation is reasonably clear, and we welcome the inclusion of non-cash vouchers within the scope of the exemption, we have asked HMRC to make clear certain aspects. For example, that a gift of chocolates and wine is a single ‚ benefit‚ rather than two separate items (the cost of which is to be assessed separately). We also believe that greater clarification is needed in regard to the difference between a reward for ‚ particular services‚ (which is legislation excludes from qualifying for the exemption) and a reward for services.

Legislation can be expected to be included in the Finance Bill 2016 when this is published in March 2016. The exemption is expected to take effect from 6 April 2016.

Technical Team