SE21846 - Benefits: exemption for equipment or services provided to employees with a disability

Section 155ZB ICTA 1988 and S.I.2002 No.1596

From 9 July 2002 employees with a disability are not liable to a taxable benefit on the private use of equipment or services provided by their employer to enable them to take up or stay in work.

The provision of equipment and services solely to carry out the duties of the employment, where private use is not significant, is exempt from a tax charge under Section 155ZA ICTA 1988 ( SE21601).

For employees with a disability special rules encourage employers to provide equipment and services to assist them to work. In most cases the Section 155ZA exemption ensures that no tax charge arises on this benefit, but where the employee uses the equipment both in work and outside work (for example, a wheelchair or a hearing aid), private use is significant and, before 9 July 2002, the employee could be chargeable on the benefit.

Regulations took effect from 9 July 2002 to exempt from tax a benefit that would otherwise arise in these circumstances.