Income Tax (Earnings and Pensions) Act 2003 section 646

Former miners etc.: coal and allowances in lieu of coal

Section 646 provides an income tax exemption for free coal, smokeless fuel, or cash allowances in lieu of fuel provided to former colliery workers and their surviving spouses or civil partners.

• No income tax arises on the provision of coal or smokeless fuel to a former colliery worker, or to their widow, widower, or surviving civil partner
• Cash allowances paid in lieu of coal or fuel are also exempt from income tax on the same basis
• The exemption applies provided the amount of fuel or the allowance does not substantially exceed what is reasonably required for personal use, and this condition is assumed to be met unless HMRC can demonstrate otherwise
• A former colliery worker is defined as someone who has ceased to be employed as a coal miner, or who has ceased to be employed at or about a colliery in a role other than clerical, administrative, or technical work