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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Vouchers and credit-tokens: cash vouchers

Section 75 ITEPA 2003

For a description of the points to consider in a case involving a voucher or credit-token see EIM16030.

A cash voucher is defined as any voucher, stamp or similar document capable of being exchanged for a sum of money that is greater than, equal to or not substantially less than the expense incurred in providing the voucher by the person who provides it. Thus a voucher that is exchangeable for, say, £100 worth of goods or £10 in cash, is unlikely to be a cash voucher and will fall to be dealt with as a non-cash voucher (see EIM16040).

The cash voucher legislation was introduced to counter specific holiday pay stamp schemes. It is unlikely to have wide application elsewhere, although it may catch, for example, Premium Bonds. Stock certificates for redeemable securities (such as Treasury Loan Stock) are not cash vouchers because the certificates themselves are not exchanged for cash on redemption, they merely provide proof of registration of the stock.

A benefit arises where a cash voucher is provided for an employee or a member of his or her family (see EIM16080) by reason of the employment.

For the amount of earnings where a cash voucher is involved, see EIM16140.