Income Tax (Earnings and Pensions) Act 2003 section 241

Incidental overnight expenses and benefits: overall exemption limit

Section 241 sets the overall cap on the tax exemption for incidental overnight expenses and explains how the limit is calculated and applied.

• The exemption for incidental overnight expenses is lost entirely if the total qualifying amount exceeds the permitted limit for the period in question.
• The total qualifying amount includes both direct expense payments and the value of any non-cash vouchers or credit tokens provided for incidental overnight costs.
• The permitted limit is £5 per night spent wholly within the United Kingdom and £10 per night spent wholly or partly outside the United Kingdom.
• If the permitted limit is exceeded, the whole exemption is withdrawn — not just the excess over the limit.