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HMRC internal manual

Tax Credits Technical Manual

Income: Employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Long Service awards

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1 (Item 10)

An award made to the claimant as a director or employee by way of a testimonial to mark long service, if the conditions of section323 of ITEPA are satisfied.

This is the income tax exemption (see Employment Income Manual EIM01500 section 323 of the ITEPA 2003)


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.