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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Car benefit calculation Step 7, car unavailable: circumstances when car is unavailable: example

Section 143 ITEPA 2003

Before reading this example, ensure that you are familiar with:

  • the guidance on step 7 at EIM25100 onwards and
  • in particular, the meaning of unavailable, see EIM25105.

We accept that a car is unavailable to an employee if:

  • the car is physically incapable of being used, for example it has broken down and has not been repaired, or is still in the garage undergoing repairs
  • the employee is unable to gain access to the car because he or she does not have the keys to the car, and has no power or authority to

    • direct the person who has the keys to hand them over, or
    • direct the person who has the keys to drive the employee to a location of the employee’s choice.

But remember, if the car was available both before and after the period in question, the period must last at least 30 consecutive days in order to count as a period of unavailability, see EIM25105.