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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: Gifts

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1 (Item 14).

Gifts of goods or a voucher or token to obtain goods received from third parties (and satisfying the conditions of sections 324 and 270 of ITEPA)

This is the income tax exemption (see Employment Income Manual EIM01450 and sections 270 and 324 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.