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HMRC internal manual

Employment Income Manual

Car fuel benefit: example 2: reduction if car unavailable

Section 152 ITEPA 2003

This example illustrates the principles at EIM25565.


The car in EIM25600 is not made available to the employee until 1 July 2003. It is therefore not available from 6 April to 30 June 2003 inclusive (86 days out of 366; note that tax year 2003 to 2004 is a leap year).

Using the formula at EIM25565, the reduced benefit is:

(£2,880 × (366 − 86)) ÷ 366 = £2,203

There is a more complex example at EIM25615.

Tax years prior to 2003 to 2004

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