# Income Tax (Earnings and Pensions) Act 2003, Section 261: Exemption of recreational benefits


(1) No liability to income tax arises in respect of the provision to an employee or a member of an employee’s family or household of benefits within subsection (2).
(2) The benefits are—
(a) sporting or other recreational facilities which meet conditions A to C, and
(b) a right or opportunity to make use of such facilities.
This is subject to section 262.
(3) Condition A is that the facilities are available generally to the employees of the employer in question.
(4) Condition B is that they are not available to members of the public generally.
(5) Condition C is that they are used wholly or mainly by persons whose right or opportunity to use them is employment-related (whether or not by reference to the same employer).
(6) A person’s right or opportunity to use facilities is “employment-related” if and only if—
(a) it derives from the person being—
(i) an employee or former employee, or
(ii) a member or former member of the family or household of an employee or former employee,
of a particular employer, and
(b) the facilities are provided so as to be available generally to that employer’s employees.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/section/261 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-261
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.