Expenses and benefits: scholarship for an employee's family member

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What's exempt

You don鈥檛 have to pay or report anything if the scholarship is 鈥榝ortuitous鈥�. This means that there鈥檚 no direct connection between the employee working for your business and their family member getting a scholarship.

A scholarship is fortuitous if all the following apply:

  • the person with the scholarship is in full-time education
  • the scholarship would still have gone to that person even if their family member didn鈥檛 work for you
  • the scholarship is run from a trust fund or under a scheme
  • 25% or fewer of the payments made by the fund or scheme are for employment-linked scholarships