| Commentary

(e) Annual parties

| Commentary

(e)     Annual parties

There is an exemption for one annual party or similar function, so long as that party costs not more than £150 per head (ITEPA 2003 s 264 (and SI 2003/1361)). The cost per head is calculated as the total cost of the party, plus any transport or accommodation incidentally provided for anyone attending (whether or not they are employees), plus VAT, divided by the total number of persons attending (including non-employees). Where two or more such parties are provided in the tax year, no liability to tax arises in respect of

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