equipment or facilities provided to enable them to carry out their
job under regulations laid in parliament yesterday.
'The government is continuing to remove barriers to work and ensure
that disabled people do not face discrimination in the workplace. The
regulations laid today ensure that benefits for disabled employees
which may be used both in and out of the workplace such as a
wheelchair or hearing aid, will not be liable to a tax charge.'
1. The provision of equipment, services or facilities which are used
solely to carry out the duties of an employment, or where the private
use is not significant, is exempt from tax. But where the private use
is significant a tax charge can arise on the employee.
2. For disabled workers there are legislative arrangements, notably
under Access to Work Programme and the Disability Discrimination Act
1995 (DDA), which provide special equipment and services to enable
them to take up or stay in work. In most cases this will consist of
equipment or facilities on the work premises used solely to carry out
the job and no tax charge will arise. But in certain circumstances,
for example where a hearing aid or wheelchair is provided, the
employee may use the equipment full time, so that the private use is
significant and an employee benefits tax charge could arise.
3. Section 155ZB of the Income and Corporation Taxes Act allows
regulations to be made to exempt certain employee benefits. The
regulations laid today will ensure that no tax charge will arise on
disabled people from the provision of equipment in such
4. The regulations come into force on 9 July 2002.
1. The Access to Work Programme, run by the government employment
agencies, provides practical advice and support to disabled people
and their employers to help overcome work-related obstacles resulting
from disability. This assistance can be in various forms, including
finance for special work equipment or adaptations to work premises to
enable disabled people to carry out their job. A proportion of the
cost may be met by the employer. There are also requirements under
the DDA for employers and others to make `reasonable adjustments` to
ensure that disabled people are not discriminated against in regard
to accessing and using work or other premises.
2. In most cases no taxable benefit arises from use of such work
equipment or services. In a few cases, however, there may be
significant private use as well and the possibility of a tax charge;
these regulations will remove that charge.