Mr. Gresham Cookeasked the Chancellor of the Exchequer to what extent under his regulations meal vouchers are emoluments subject to Pay-As-You-Earn.
Mr. AmoryIt depends on the facts of the case whether meal vouchers issued under a particular scheme are taxable emoluments, but I am informed by the Inland Revenue that in their view the facts in regard to the majority of the vouchers in use today are such as to render them taxable. There is, however, a long-standing practice under which vouchers have not been taxed, and I propose that this extra-statutory concession should be continued for the time being, subject to certain conditions. The conditions are that (a) vouchers must be non-transferable and used for meals only, (b) where any restriction is placed on their issue to employees they must be available to lower paid staff, and (c) the value of vouchers issued to an employee must not exceed 3s. for each full working 14W day. The value of any vouchers, or part of a voucher, which does not comply with these conditions, will be taxed as from the beginning of the next Income Tax year. I intend to keep the whole question of the taxability of luncheon vouchers under review.