s 261 Exemption of recreational benefits
(1) No liability to income tax arises in respect of the provision to an employee or a member of an employee’s family or household of benefits within subsection (2). (2) The benefits are— (a) sporting or other recreational facilities which meet conditions A to C, and (b) a right or opportunity to make use of such facilities. This is subject to section 262. (3) Condition A is that the facilities are available generally to the employees of the employer in question. (4) Condition B is that they are not available to members of the public generally. (5) Condition C is that they are used wholly or mainly by persons whose right or opportunity to use them is employment-related (whether or not by reference to the same employer). (6) A person’s right or opportunity to use facilities is “employment-related” if and only if— (a) it derives from the person being— (i) an employee or former employee, or (ii) a member or former member of the family or household of an employee or former employee, of a particular employer, and (b) the facilities are provided so as to be available generally to that employer’s employees.