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Unused phone lines to be taxed for rural broadband

Unused landlines will be taxed under government plans to subsidise rural broadband, and VAT will be charged on the new 50p per month tax.

"The duty will be payable on all local loops that are made available for use by an owner whether or not the lines are actually used," the Treasury said today.

"It will also be payable on all local loops regardless of whether the loop consists of a copper pair, a co-axial cable or a fibre connection."

Only means-tested households subscribed to ultracheap "social phone" services will be exempted.

A consultation makes it clear that every other landline, including those used exclusively to access the internet, will be taxed from October next year. The Treasury said the landline firms had complained exempting internet only line might hit their voice revenues.

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