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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 7, car unavailable: reduction in car benefit charge

Section 143 ITEPA 2003

Before reading the guidance that follows this paragraph, ensure that you are familiar with the method statement in Section 121(1) ITEPA 2003, see EIM24015 (this page illustrates step 7).

When the car is unavailable for any part of the year, the chargeable benefit is reduced in proportion to the number of days during the year when it was unavailable, see example EIM25150.

In calculating the reduction for unavailability, the car benefit charge is reduced by the proportion of the precise number of days for which the car was unavailable to the number of days in the tax year.