§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what is the tax treatment where a company pays subsidies on employees' meals; and to what extent such payments are allowed for tax purposes against profits by the company.
§ Mr. Peter ReesSubsidised meals are not taxable under the general income tax law. They are, however, taxable under the596W special rules for directors and higher-paid employees, unless the meals are provided on the business premises and are on a reasonable scale and luncheon facilities are also provided for employees generally. The value of meal vouchers provided by employers in excess of 15p a day is also taxable. Such expenditure would normally be allowable, under the general expenses rule, as a deduction in computing the profits of the company for tax purposes.