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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Car benefit: meaning of by reason of the employment: car made available by someone other than the employer

Section 114(1) ITEPA 2003

A car is sometimes provided by someone other than the employer. Where this happens, it does not mean that it is not made available by reason of the employment. It simply means that Section 117 does not automatically regard it as made available by reason of the employee’s employment.

So if a car is made available by someone other than the employer you need to examine all the relevant facts and circumstances to decide whether it has in fact been made available by reason of the employment (see EIM20503 for an explanation of how to apply this test). There will still be a car benefit charge if the facts show that the car is made available by reason of the employment.

For instance, some car dealers will make cars available to playing members of county cricket or leading football teams. The cars, which often carry some advertising material, would not be made available but for the recipient’s employment within their sport. In such circumstances the car will attract the appropriate car benefit charge.