Section 243 — Income Tax (Earnings and Pensions) Act 2003: Support for public bus services

Support for public bus services 243 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.