A British man accused of plotting a terrorist attack was caught on a bugging device laughing and singing along to violent Jihadist videos in his car, the partly-secret trial heard.

Erol Incedal, 26, formerly known in the case as AB, is on trial at the Old Bailey on charges of preparing acts of terrorism and possessing a document entitled Bomb Making on a memory card.

The jury has been told that Incedal was conspiring with others to either target individuals, such as former prime minister Tony Blair, or launch a wide-ranging, indiscriminate attack.

After he was stopped for a motoring offence on September 30 last year, police planted a bugging device in his car. He was arrested on October 13 last year with Mounir Rarmoul-Bouhadjar, who has admitted possessing a terrorist document.

The jury listened to extracts from the listening device. In one recording, there are sounds of gunfire, religious music and singing in the background as Incedal discusses Jihadist videos in the car with Rarmoul-Bouhand another man.

Earlier, the court heard how police searched Incedal's home in Unity Court, south-east London, and a second flat in Sussex Gardens near Paddington.

During the search, police found a document headed "Plan A" which listed "three to four workers, two tennis racquets, one month's surveillance, rent nearby flat, transport, assess security, assess risk, legitimacy, action etc". They also found a laptop which contained coded messages referring to a "Mumbai-style" attack.

Incedal denies the charges. Mounir Rarmoul-Bouhadjar, also 26, has pleaded guilty to possessing a terrorist document.

The trial was adjourned until 10am today.