Income Tax (Earnings and Pensions) Act 2003 section 86

Transport vouchers under pre-26th March 1982 arrangements

Section 86 exempts certain transport vouchers from the vouchers and credit-tokens tax charge where they are provided under long-standing arrangements that were already in place before 26 March 1982.

• Transport vouchers provided to employees of passenger transport undertakings under arrangements operating on 25 March 1982 are exempt from the vouchers tax charge
• The arrangements must be intended to enable the employee or a family member to obtain passenger transport services from the employer, a related group company, or another passenger transport undertaking
• A passenger transport undertaking is a business whose activities consist wholly or mainly of carrying passengers, or a wholly-owned subsidiary of such a business
• Where a transport voucher such as a season ticket is provided outside these qualifying pre-1982 arrangements, the benefit is chargeable to income tax in the normal way