§ Mr. McCrindleasked the Chancellor of the Exchequer what are the statutory provisions governing the provision of incentive travel for staff without incurring tax liability.
§ Mr. Ridley[pursuant to his reply, 11 June 1982, c. 173]: Sections 181 and 183 of the Income and Corporation Taxes Act 1970 charge to tax the emoluments of any office or employment and define "emoluments" as including
all salaries, fees, wages, perquisites or profits whatsoever".Section 36, of the Finance (No. 2) Act 1975 further provides that any employee who receives, by reason of his employment, vouchers exchangeable for money goods or services is liable to tax on the cost of providing the money, goods or services.
In addition, section 61 of the Finance Act 1976 treats as emoluments the cost of providing any benefit to a director or higher paid employee—that is, an employee whose remuneration including reimbursed expenses and benefits exceeds £8,500 a year—which would not otherwise be chargeable to tax as income. It is only if incentive travel arrangements do not fall within any of these provisions that they are not taxable under schedule E.