This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Employment Income Manual

Car fuel benefit: example 3: reduction if fuel withdrawn and not reinstated

Section 152 ITEPA 2003

This example illustrates the principles at EIM25570.


The car in EIM25600 is made available to an employee from 1 June 2003 to 31 January 2004 (245 days). The car is therefore unavailable for 121 days in that tax year (2003/04 is a leap year).

Provision of free fuel for private use commenced on 1 July but the facility was withdrawn on 31 December (which was 31 days before the car became unavailable).

Using the formula at EIM25565, the reduced benefit is:

      £2,880  x (366 - (121 + 31)) / 366 = £1,684



Note: days in the first period when fuel was not provided for the car (1 June to 30 June) are not excluded because the statutory conditions are not fulfilled later in the year. Only the days from 1 to 31 January meet the statutory conditions, so only those days are excluded.

There is a more complex example at EIM25615.

Years prior to 2003/04

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