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HMRC internal manual

Employment Income Manual

Car fuel benefit: when cash equivalent is nil

Section 151 ITEPA 2003

The car fuel benefit charge is incurred as detailed at EIM25510.

The car fuel benefit charge is reduced to nil if it can be shown that either condition A or condition B applies.

Condition A

This is met if, in the tax year in question:

  • the employee (this includes a director) is required to make good (see EIM25650) to the person providing the fuel the whole of the expense incurred by that person in connection with the provision of fuel for the employee’s private motoring and  
  • the employee does make good that expense.

Condition B

This is met if in the tax year in question the fuel is made available only for business travel (see EIM23305).

Years prior to 2003/04

The fuel benefit charge had a different basis in these years.