Income Tax (Earnings and Pensions) Act 2003 section 270

Exemption for small gifts of vouchers and tokens from third parties

Section 270 provides an exemption from income tax for small gifts from third parties that take the form of non-cash vouchers or credit-tokens, provided certain conditions are met.

• Non-cash vouchers and credit-tokens are exempt from tax as employment benefits if three conditions (A to C) are all satisfied
• The voucher or token must be provided as a gift (Condition A)
• The voucher or token must only be capable of being used to obtain goods — not services or cash (Condition B)
• The voucher or token must also satisfy the rules for the general exemption of small gifts from third parties set out in section 324 (Condition C)