Finance Act 2001

60Exemption for works bus services: extension to minibuses

(1)Section 197AA of the Taxes Act 1988 (works bus services: exemption from charge on benefits) is amended as follows.

(2)In subsection (1) (which confers the exemption), after “section 154 (taxable benefits: general charging provision)” insert “, or under section 157 (charge on provision of car for private use),”.

(3)In subsection (2) (meaning of works bus service), after “by means of a bus” insert “, or a minibus,”.

(4)In subsection (3) after the definition of “bus” insert—

“minibus” means a vehicle constructed or adapted for the carriage of passengers which has a seating capacity of 9 or more, but less than 12;.

(5)In subsection (6) after “154” insert “or 157”.

(6)After subsection (8) (determination of seating capacity) insert—

(9)In determining whether a vehicle is a minibus for the purposes of this section, no account shall be taken of seats in relation to which relevant construction and use requirements are not met.

In this subsection “construction and use requirements” has the same meaning as in Part 2 of the Road Traffic Act 1988 or, in Northern Ireland, Part III of the Road Traffic (Northern Ireland) Order 1995..

(7)This section has effect for the year 2002-03 and subsequent years of assessment.