EIM23700 - Car benefit: special cases: miscellaneous: cars available after employment ceases
Sections 114(1) and Part 6 Chapter 3 ITEPA 2003
Occasionally, under an agreement made on termination of the employment, 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 after the termination of the employment, the amount of the car benefit charge is reduced to the date of cessation at step 7 of Section 121(1) ITEPA 2003 (see EIM25100 onwards).
Any fuel scale charge is also reduced to the date of cessation.
There is an additional benefit charge for the continuing availability of the car after the employment has ceased, which must be calculated separately, see EIM12805 onwards and EIM13906 in particular.