Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Car benefit: introduction

Part 3 Chapter 6 ITEPA 2003

Car benefit uses its own set of statutory rules entirely separate from those for other benefits. It follows that the rules for most other benefits described at EIM21001 onwards do not apply to car benefit.

To whom does car benefit apply

It applies to the benefit obtained by a director or employee who, for 2015/16 and earlier is not in an excluded employment (see EIM20007) and is therefore chargeable under the benefits code from having a car made available for private use.

There are two main aspects to consider in respect of the car benefit charge. These are:

  • are the conditions present for a car benefit charge to apply and (if yes),
  • what is the amount of the cash equivalent of that benefit (or car benefit charge)?

When a car benefit charge applies

The conditions for a car benefit charge to apply are listed at EIM23020.  See also EIM23021

The amount of the car benefit charge

Guidance on this can be found via the relevant contents page at EIM24000.

Additional charge when fuel is provided

Guidance on this can be found via the relevant contents page at EIM25500.

Other charges in connection with a provided car

See EIM23035.