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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Particular benefits: exemption for sports and recreation facilities: exclusion of mechanically propelled vehicles and domestic premises

Section 262(1) and (2) ITEPA 2003

EIM21825 explains when the exemption in Section 261 ITEPA 2003 for sporting and recreational facilities applies.

The following things are excluded from the definition of an exempt qualifying facility (Section 262 ITEPA 2003):

  • the use of (or an interest in) any mechanically propelled vehicle (see below),
  • the use of (or an interest in) any holiday or other overnight accommodation or any facilities provided in association with the use of such accommodation,
  • a facility provided on domestic premises (see below),
  • a facility available to or for use by members of the public generally (see EIM21827 and EIM21828) and
  • a facility not used wholly or mainly by relevant employees (see EIM21829) and former employees (including members of their families or households).

Mechanically propelled vehicle

A vehicle includes any ship, boat or other vessel, any aircraft and any hovercraft as well as any road vehicle (Section 262(2)).

Mechanically propelled means fitted with an engine capable of propelling the vehicle.

A sailing dinghy or yacht is mechanically propelled if it has a motor inboard or outboard but not otherwise.

Domestic premises

Domestic premises means (Section 262(2)):

  • any premises used wholly or mainly as a private dwelling and
  • any land or other premises belonging to or enjoyed with any premises so used.