S243 ITEPA 2003

This is an exemption which was introduced to allow employers, unable or unwilling to operate their own works bus, to provide an alternative method of transport for their employees.

Without the exemption, tax would be charged if an employee received a free or discounted bus pass for travel on a route stopping at or near the workplace or travelled on a route stopping at or near the workplace that had been improved as a result of the financial or other support being provided by the employer.

How does the exemption work?

When an employer provides financial or other support to a public transport company running a public transport road service a benefit could arise on the employees if

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