Income Tax (Earnings and Pensions) Act 2003 section 267

Exemption of credit-tokens used for exempt benefits

Section 267 ensures that when an employee uses a credit-token (such as a company credit card) to obtain a benefit that would itself be tax-exempt if provided directly by the employer, the use of the credit-token does not trigger a separate income tax charge.

• Credit-tokens used to obtain benefits that would be tax-exempt if provided directly do not give rise to an income tax liability
• The exemption covers a defined list of benefits including workplace parking, transport for disabled employees, mobile telephones, eye tests, and health screenings
• The exemption applies proportionally — if only part of a credit-token transaction relates to an exempt benefit, only that part is exempt
• The exemption extends to employees in lower-paid employment as ministers of religion, who are treated as though they would otherwise qualify for the relevant benefit exemptions