320Limited exemption for computer equipmentU.K.
(1)No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of the provision of computer equipment if conditions A to C are met.
(2)Condition A is that the equipment is made available to the employee or to a member of the employee’s family or household without any transfer of property in it.
(3)Condition B is that the arrangements under which computer equipment is made available to employees of the employer, or to members of their families or households, do not favour directors (see subsection (6)).
(4)Condition C is that the aggregate cash equivalent of the benefit of the provision of such equipment in the tax year does not exceed £500.
(5)If conditions A and B are met, but condition C is not, the employee is only liable to income tax in the tax year by virtue of Chapter 10 of Part 3 on so much of that aggregate cash equivalent as exceeds £500.
(6)The arrangements referred to in condition B are only taken to favour directors if—
(a)the only such arrangements are arrangements under which the employee is required to be a director of a company, or
(b)taking all such arrangements together, the terms on which the equipment is made available are more favourable in some or all cases where the employee is a director than in one or more cases where the employee is not.
(7)In this section—
(a)“computer equipment” includes printers, scanners, modems, discs and other peripheral devices designed to be used by being connected to or inserted in a computer,
(b)“director” has the meaning given by section 67(1),
(c)references to making computer equipment available—
(i)include references to the provision, together with any computer equipment made available, of a right to use computer software, but
(ii)do not include references to the provision of access to, or the use of, [F1a public electronic communications service.]
F2(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words in s. 320(7)(c)(ii) substituted (25.7.2003 for specified purposes, 29.12.2003 for further specified purposes) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 175(3) (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)
F2S. 320(7)(d) repealed (25.7.2003 for specified purposes, 29.12.2003 for further specified purposes) by Communications Act 2003 (c. 21), s. 411(2), Sch. 19(1) Note 1 (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)