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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Car benefit: exceptions

Sections 118 and 167 ITEPA 2003

There are various situations where no car benefit charge will arise in respect of a car that is made available to and actually used by an employee or director who, for 2015/16 and earlier, is not in an excluded employment. These are where the car in question:

  • is one that the employee is specifically prohibited from using for private purposes and which is not so used (see EIM23400), or
  • satisfies all the conditions to be treated as a pooled car for tax purposes (see EIM23450 onwards)
  • is used by a disabled employee and the conditions in EIM23655 or EIM23660 are met
  • is an emergency vehicle and all the conditions at EIM23600 (including those at EIM23605) are met.