Excellent quotes from
http://www.tvlicensing.biz/
"A television licence is legal permission to install and use television equipment to receive or record television broadcast signals. Under the Broadcasting Act 1990, you need a television licence to receive or record television programmes. This applies if you use equipment to receive or record BBC 1, BBC 2, ITV, Channel 4, Channel 5, satellite, or cable programs. If you are watching 'Sky', or any other satellite service, controlled from within the UK, you must have a television licence.", M. W. D. Kimball Customer Services.
"When you only use a TV for:
- playing video games
- watch pre-recorded videos [VCR/DVD]*
- closed circuit monitoring [CCD]
- displaying -for example- presentations using your PC
Then -again- you do NOT need a TV licence.
All of the above are isolated set-ups as they are not connected to an aerial. Make sure, however, to detune TV receiving equipment as such that it only displays noise whatever channel chosen. "
Also, further info on viewing over the Internet (and good news for me!):
"An interesting case here ...
The BBC faces losing hundreds of thousands of pounds in licence fees because of a legal loophole that allows viewers to watch television on the internet for free. Soaring take-up of broadband and technological developments are making internet-streamed television a reality. Last summer, for the first time, the BBC broadcast coverage of the Olympic Games 2004 live on the internet for people to watch on their computers. It has promised to put further broadcasts on the internet as part of a corporate social responsibility drive aimed at boosting broadband take-up and preventing users "falling on the wrong side of the digital divide".
However, although the licensing authorities maintain that anyone watching television on their computer would need a television licence, Ofcom, the communications regulator, and the Department for Culture, question that claim.
Ofcom says that there is a grey area as to whether a licence is required for watching television on the internet.
A spokesman for the Department for Culture said initially that a licence would not be needed and that it was "monitoring the situation".
However, it later said that it would be "inappropriate for the Government to comment on licensing requirements . . . for specific types of equipment".
... So if you receive programme services, live via the internet, for example, BBC On-line [Newsnight is one such broadcast], then you do
NOT need to buy a TV Licence."