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 2003/04 is a leap year).
Using the formula at EIM25565, the reduced benefit is:
|(£2,880 x (366-86)) / 366 = £2,203|
There is a more complex example at EIM25615.
Years prior to 2003/04
The fuel benefit charge had a different basis in these years.