Particular benefits: car parking near work
Section 237 ITEPA 2003
There is no tax charge on a director or employee within the benefits code on theprovision of a car or motorcycle parking space at or near his place of work. Facilitiesfor parking bicycles are also exempt.
The words ‘at or near’ are not defined in the Act. A rigid approach is not required. Applythe exemption in any case where parking facilities can be said to be within a reasonabledistance from the place of work having regard to the nature of the locality. Do not denythe exemption simply because there is a car park nearer to the place of work.
The Transport Act 2000 allows local authorities to levy a charge on employers forworkplace parking provided to employees. Where local authorities do so the employee willnot be chargeable to tax on the cost of the car parking because of the exemption inSection 237(1) ITEPA 2003.
See EIM21686 for the treatment of car parking penalties andfines.