Income Tax (Earnings and Pensions) Act 2003 section 76

Sickness benefits-related voucher

Section 76 deals with how a voucher, stamp or similar document is tested to determine whether it is a cash voucher, where the cost of providing it includes the cost of sickness benefits.

• Where the cost of providing a voucher includes sickness benefits costs, and the exchange value appears substantially less than the total provision cost, a special test applies
• Sickness benefits means benefits connected with sickness, personal injury or death
• The sickness benefits cost element is stripped out before comparing the exchange value to the provision expense
• If the exchange value equals, or is not substantially less than, the provision expense minus the sickness benefits cost, the voucher is treated as a cash voucher