Part 4Employment income: exemptions
Chapter 3Exemptions: other transport, travel and subsistence
242Works transport services
1
No liability to income tax arises in respect of the provision for employees of a works transport service if—
a
the service is available generally to employees of the employer (or each employer) concerned,
b
the main use of the service is for qualifying journeys by those employees, and
c
the service—
i
is used only by the employees for whom it is provided or their children, or
ii
is substantially used only by those employees or children.
2
In this section—
“children” includes stepchildren and illegitimate children but does not include children aged 18 or over, and
“works transport service” means a service which is provided by means of a bus or a minibus for conveying employees of one or more employers on qualifying journeys.
3
For the purposes of this section—
a
“bus” means a road passenger vehicle which has a seating capacity of 12 or more, and
b
“minibus” means a vehicle constructed or adapted for the carriage of passengers which has a seating capacity of 9, 10 or 11.
4
But a vehicle which falls within the definition in subsection (3)(b) is not a minibus for the purposes of this section if—
a
it has one or more disqualified seats, and
b
excluding the disqualified seats, it has a seating capacity of 8 or less.
5
For the purposes of subsections (3) and (4) the seating capacity of a vehicle is determined in the same way as for the purposes of Part 3 of Schedule 1 to VERA 1994 (vehicle excise duty on buses).
This applies whether or not the vehicle is a bus within the meaning of that Part of that Schedule.
6
For the purposes of subsection (4) a seat is disqualified if relevant construction and use requirements are not met in relation to it.
In this subsection “construction and use requirements” has the same meaning as in Part 2 of the Road Traffic Act 1988 (c. 52) or, in Northern Ireland, Part III of the Road Traffic (Northern Ireland) Order 1995 (S.I. 1995/2994 (N.I. 18)).