Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 86: Transport vouchers under pre-26th March 1982 arrangements
325.This section excepts a transport voucher from the application of this Chapter where it is provided, under arrangements in operation on 25 March 1982, to enable an employee (or family member) to obtain cheap or free travel provided by their employer or another passenger transport undertaking. It derives from section 141(6) of ICTA.
326.Where a transport voucher, such as a season ticket, is provided other than under such arrangements, the benefit of the voucher is chargeable to tax.
327.Paragraph 27 of Schedule 24 to F A 1994 provided for the exception to continue for employees of British Rail transferred to new rail franchises following privatisation. Paragraph 224 of Part 2 of Schedule 6 to this Act makes consequential amendments to those provisions.