Income Tax (Earnings and Pensions) Act 2003 section 96

Dispensations relating to vouchers or credit-tokens

Section 96 allows HMRC to grant a dispensation so that vouchers or credit-tokens provided to employees do not give rise to a tax charge, and sets out the rules for revoking such dispensations.

• Where an employer applies and HMRC is satisfied that no additional tax would arise, HMRC must issue a written dispensation covering the vouchers or credit-tokens in question.
• While a dispensation is in force, the tax charges that would otherwise apply to vouchers and credit-tokens under this chapter do not apply.
• HMRC may revoke a dispensation if they consider there is reason to do so, and the revocation can be backdated as far as the date the dispensation was originally given.
• The consequences of revocation depend on the effective date chosen by HMRC — if backdated, tax charges may apply for the entire period since the dispensation was granted.