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HMRC internal manual

Employment Income Manual

Employment income: exemption for suggestion scheme awards: the permitted maximum: encouragement awards

Sections 321(6) and 322(1) ITEPA 2003

An encouragement award is an award (other than a financial benefit award (see EIM06630)) made for a suggestion with intrinsic merit or showing special effort.

The permitted maximum for an encouragement award, for the purpose of exemption underSection 321, is £25.

See also:

EIM06640 Employee making more than one successful suggestion.
EIM06670 Employer using scheme to make non-qualifying awards.