HCI alliance concedes the end of computer tax exemption and looks to the future

The HCI Alliance today reluctantly conceded that nothing more can be done to save the tax exemption that underpinned Home Computing Initiatives (HCI) following the rejection of several amendments tabled by the opposition parties in the House of Commons on Tuesday 2 May.

HCI Alliance Director, Vivien Quinn, said today: ìDespite the HCI Allianceís proposal to the Chancellor to put the abolition of the tax exemption on hold during a review and consultation period, and our suggestions for modifying HCI, we have not been successful in getting the Government to engage in any sort of meaningful negotiation with us since the Chancellorís 2006 Budget decision.î

The HCI Alliance outlined a number of ways in which HCI could be modified including tighter guidelines on eligible equipment, capping the benefit of the tax exemption at the basic rate of tax, reducing the annual value of the tax exemption and establishing closer links with other Digital Inclusion programmes.

Following consultation with external advisors and discussion amongst the Alliance members - BT, Intel and Microsoft - the decision has been made that nothing more can be done, and to disband the HCI Alliance and its related resources (eg website and hotline) at the end of May.

Vivien Quinn goes on to say: ìWe are naturally disappointed ñ for the thousands of low paid workers who will now be denied the opportunity of obtaining computing equipment for use in their homes through this initiative, and for the HCI industry that has suffered as a result of this decision. So much has been achieved since the re-launch of HCI in January 2004 ñ half a million people are now enjoying the benefits of having a home computer thanks to the success of HCI over the last two and a half years.î

The HCI Alliance is now looking to the future and exploring ways in which employer-provided home computers can still be offered to employees at an attractive discount, without the tax exemption. Discussions are under way with the Government, HCI Industry and other interested parties to identify a way forward based on a unified solution.