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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Car benefit: benefit not otherwise taxable

Section 119 ITEPA 2003

Arguments that normal car benefit rules do not apply where cash alternative offered

Taxpayers have been known to argue that a different basis of valuing the benefit should be used if a cash alternative to the car is offered (but not taken).

Section 119 ITEPA 2003 makes it clear that the mere fact that a cash alternative is offered does not change the method of calculation of the cash equivalent of the car benefit.