Part 4Employment income: exemptions

Chapter 3Exemptions: other transport, travel and subsistence

243Support for public bus services

1

No liability to income tax arises in respect of the provision of financial or other support for a public transport road service if—

a

in the case of a local bus service, conditions A and B are met, or

b

in any other case, conditions A to C are met.

2

Condition A is that the service is used by employees of one or more employers for qualifying journeys.

3

Condition B is that the service is available generally to employees of the employer (or each employer) concerned.

4

Condition C is that the terms on which the service is available to the employees of the employer (or each employer) concerned are not more favourable than those available to other passengers.

5

In this section—

  • local bus service” means a local service (as defined in section 2 of the Transport Act 1985 (c. 67)), and

  • public transport road service” means a public passenger transport service provided by means of a road vehicle.