Part IIIIncome Tax, Corporation Tax and Capital Gains Tax
Chapter IGeneral
Benefits in kind
48Entertainment: credit-tokens
1
In section 142 of the Taxes Act 1988 (credit-tokens), after subsection (3A) there shall be inserted—
3B
Subsection (1) above shall not apply in relation to any credit-token to the extent that it is used to obtain entertainment (including hospitality of any kind) for the employee or a relation of his, if—
a
the person providing the credit-token is neither his employer nor a person connected with his employer;
b
neither his employer nor a person connected with his employer has directly or indirectly procured the provision of the entertainment; and
c
the entertainment is not provided either in recognition of particular services which have been performed by him in the course of his employment or in anticipation of particular services which are to be so performed by him;
and section 839 shall apply for determining whether persons are connected for the purposes of this subsection.
2
The provision set out in subsection (1) above shall be inserted after subsection (3) of section 36A of the [1975 c. 45.] Finance (No. 2) Act 1975 (credit-tokens) as subsection (3A) with the substitution for the reference to section 839 of the Taxes Act 1988 of a reference to section 533 of the Taxes Act 1970.
3
The amendment made by subsection (1) above shall have effect for the year 1988-89 and subsequent years of assessment; and the amendment made by subsection (2) above shall have effect for the year 1987-88.