Part 3Income tax, corporation tax and capital gains tax

Chapter 5Personal taxation

Mobile telephones and computers

60Mobile telephones

1

In section 266(2) of ITEPA 2003 (exemption of non-cash vouchers for exempt benefits), insert at the end

or

d

section 319 (mobile telephones).

2

In section 267(2) of that Act (exemption of credit-tokens used for exempt benefits), after paragraph (f) insert—

g

section 319 (mobile telephones).

3

For section 319 of that Act (employment income: exemption for mobile telephones) substitute—

319Mobile telephones

1

No liability to income tax arises by virtue of section 62 (general definition of earnings) or Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of the provision of one mobile telephone for an employee without any transfer of property in it.

2

In this section “mobile telephone” means telephone apparatus which—

a

is not physically connected to a land-line, and

b

is not used only as a wireless extension to a telephone which is physically connected to a land-line,

or any thing which may be used in such apparatus for the purpose of gaining access to, or using, a public electronic communications service.

3

In this section the reference to the provision of a mobile telephone includes a reference to the provision, together with the mobile telephone provided, of access to, or the use of, a public electronic communications service by means of one mobile telephone number.

4

For the purposes of subsection (2) “telephone apparatus” means wireless telegraphy apparatus designed or adapted for the primary purpose of transmitting and receiving spoken messages and used in connection with a public electronic communications service.

4

This section has effect for the year 2006-07 and subsequent years of assessment.

5

But the amendment made by subsection (3) does not cause any liability to income tax to arise in respect of the provision of a mobile telephone for an employee, or a member of an employee's family or household, if the mobile telephone was first provided to him before 6th April 2006.