Car benefit: special cases: miscellaneous: cars available after employment ceases
Sections 114(1) and Part 6 Chapter 3 ITEPA 2003
Occasionally an employer may allow an ex-employee to continue to use the provided car for some time after the employment has ceased but without transferring the car to the ownership of the employee. In a case of continued use of a car, the amount of the car benefit charge is reduced on a time basis to the date of cessation at step 7 of Section 121(1) ITEPA 2003 (see EIM25100 onwards).
Any fuel scale charge is also reduced on a time basis.
For the tax treatment of the continuing availability of the car after employment has ceased, see EIM12805 onwards.