New fixed exemption for trivial benefits in kind
Trivial benefits in kind have been disregarded unofficially by HMRC for a few years now. But no one ever actually knew what ‘trivial’ meant and so this was difficult to rely on. It was thought to cover the traditional gift of a turkey from an employer to an employee at Christmas. Finally the amount of statutory exemption from tax for trivial benefits will be defined and fixed by the 2016 Finance Act at a maximum cost of £50 per gift (subject to annual limits for directors and shareholders). Remember though, this sum is not in force yet and Christmas gifts for this year must still be an undefined ‘trivial’ amount.
Date: 17th December, 2015
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