Income Tax (Earnings and Pensions) Act 2003 section 317

Subsidised meals

Section 317 provides an exemption from income tax for free or subsidised meals provided by an employer to employees, provided certain conditions relating to availability, location and the nature of the arrangement are met.

• Free or subsidised meals provided in a canteen or on the employer's business premises are exempt from income tax, provided four conditions are satisfied.
• The meals must be on a reasonable scale and available to all employees (or all employees at a particular location), either directly or through meal vouchers or tokens.
• Where meals are served in a hotel or catering establishment open to the public, a designated area must be set aside for employees and the meals must be consumed there.
• The exemption does not apply where the meals are provided through salary sacrifice or flexible remuneration arrangements under which the employee gives up pay or other income in exchange for the meals.