197AAWorks bus services

1

There is no charge to tax under section 154 (taxable benefits: general charging provision) in respect of the provision for employees of a works bus service.

2

A “works bus service” means a service provided by means of a bus for conveying employees of one or more employers on qualifying journeys.

3

For the purposes of this section—

• “bus” means a road passenger vehicle with a seating capacity of 12 or more; and

• “qualifying journey”, in relation to an employee, means a journey—

  1. a

     between his home and workplace, or

  2. b

     between one workplace and another,

  in connection with the performance of the duties of the employment.

4

The exemption conferred by this section is subject to the following conditions—

a

the service must be available generally to employees of the employer (or each employer) concerned;

b

the main use of the service must be for qualifying journeys by those employees.

5

The exemption is also subject to substantial compliance with the condition that the service must be used only by the employees for whom it is provided or their children.

• For this purpose “children” includes stepchildren and illegitimate children but does not include children aged 18 or over.

6

If under this section there is no charge to tax under section 154 (or would be no charge if the employee were in employment to which Chapter II of Part V applies), there is no charge to tax under section 141 (non-cash vouchers) in respect of a voucher evidencing the employee’s entitlement to use the service.

7

In this section—

• “employment” includes an office and related expressions have a corresponding meaning; and

• “workplace” means a place at which the employee’s attendance is necessary in the performance of the duties of the employment.

8

For the purposes of this section the seating capacity of a vehicle is determined in the same way as for the purposes of Part III of Schedule 1 to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (vehicle excise duty on buses), whether or not the vehicle is a bus within the meaning of that Part.

197ABSupport for public transport road services

1

There is no charge to tax under section 154 (taxable benefits: general charging provision) in respect of financial or other support for a public transport road service used by employees of one or more employers for qualifying journeys.

2

For this purpose—

• “public transport road service” means a public passenger transport service provided by means of a road vehicle; and

• “qualifying journey”, in relation to an employee, means a journey—

  1. a

     between his home and workplace, or

  2. b

     between one workplace and another,

  in connection with the performance of the duties of the employment.

3

The exemption conferred by this section is subject to the following conditions—

a

the terms on which the service is available to the employees referred to in subsection (1) above must not be more favourable than those available to other passengers;

b

the service must be available generally to employees of the employer (or each employer) concerned.

4

In this section—

• “employment” includes an office and related expressions have a corresponding meaning; and

• “workplace” means a place at which the employee’s attendance is necessary in the performance of the duties of the employment.