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The Benefit of Computing

Gary Hull director and Peter Goodwin senior manager PricewaterhouseCoopers LLP comment on the technical and practical issues surrounding provision of computers for employees
Clause 61 of the Finance (No 2) Bill 2006 withdraws the relief (at ITEPA 2003 s 320) for computers provided to employees for private use. Readers will recall that the relief exempted from a charge the first £500 of any benefit that would otherwise have arisen. The withdrawal was particularly surprising since the relief (often termed the Home Computer Initiative (HCI)) had underpinned the Government's intention to improve the nation's computer literacy.
There is some good news. Clause 61(3) continues the exemption for computer equipment made available before 6 April 2006. HMRC has confirmed that the exemption will continue where the...
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