SE16020 - Vouchers and credit-tokens: outline of the special rules - page 1

Sections 141, 142 and 143 ICTA 1988

For a description of the points to consider in a case involving vouchers or credit-tokens see SE16030.

Although the voucher and credit-token legislation was formed to counter specific avoidance devices current at the time of its enactment, it is cast in wide terms.

Where an employee receives goods or services, by reason of the employment, which the employee does not pay for in full, the first step should always be to consider whether a voucher or credit-token was used to obtain them. If it was, there is a specific rule for determining the amount chargeable as shown in the table at SE16140.

Note that the legislation

• Covers all employees, not just directors and employees with emoluments at a rate of £8,500 a year or more ( SE20100 onwards)
• Applies to vouchers and credit-tokens provided by third parties as well as those provided by employers
• Charges tax in respect of vouchers or credit-tokens provided for, or received by, a relation of the employee ( SE16080).

But in certain circumstances there may be no charge to tax on the employee. For a description of these see SE16025.

For an action description see SE16030.