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HMRC internal manual

Employment Income Manual

Car benefit: car made available to more than one member of family or household employed by the same employer: two charges for one car?

Section 169(2)(a) ITEPA 2003

Introductory guidance on Section 169 ITEPA 2003 (including action to resolve disagreements) is at EIM23550.

This page deals with the first case in EIM23550, where (apart from this section):

  • two people, an employee (“E”) and a member of their family or household (“M”) are employed by the same employer and
  • a car is made available to M, but not to E and
  • M is chargeable for the full cash equivalent of the car in that year (because for 2015/16 and earlier only, M is not in an excluded employment) and
  • apart from this section, E is also chargeable for the full cash equivalent (because M is a member of E’s family or household and, for 2015/16 and earlier only, E is not in an excluded employment, Section 114(1)(a) ITEPA 2003, see EIM23100).

Effect of the Section

There is only one car, so we only want to charge one car benefit. In these circumstances, the car is made available to M, but not to E. It follows that M should be charged for the benefit and that E should not. This is what the Section achieves. Its effects are:

  • on M, this part of the Section has no effect on the charge on M
  • on E, it prevents E from being charged under Section 120 ITEPA 2003
  • net result, one car, one charge.

Alternative scenario

If the car is available to both E and M and is therefore a shared car, this page will not apply but there is relevant guidance on EIM25200.

Application to vans

This guidance applies equally to van benefit

Years before 2003/04

These arrangements were formerly part of Extra-Statutory Concession A71. The other part of the Concession (shared cars) has been legislated at Section 148 ITEPA 2003 (see EIM25200).