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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Employment income: exemption for suggestion scheme awards: employer using scheme to make non-qualifying awards

Section 321 ITEPA 2003If an employer uses a suggestions scheme to make awards which do not satisfy the conditions set out in

EIM06610 (for example, because the suggestion was made at a meeting held for the purpose of proposing suggestions) the award does not qualify for exemption and must be taxed in full.

However, the making of such awards does not disqualify the employer’s entire scheme. Other awards that do meet all the conditions will continue to be exempt, up to the permitted maximum.