HMRC internal manual

Tax Credits Technical Manual

TCTM04209 - Income: Employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Coal

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1 (Item 9).

Free coal or a cash payment in lieu of free coal received by the claimant as a miner (section 306 of the ITEPA 2003).

This is the income tax exemption (see Employment Income Manual EIM66691 and section 306 ITEPA).


Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.