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HMRC internal manual

Pensions Tax Manual

Unauthorised payments: deemed or specific situations that are unauthorised payments: benefits in kind: cars and van benefits and fuel

Glossary PTM000001


Car and van benefits
Car fuel


Car and van benefits

The acquisition of cars and vans by an investment-regulated pension scheme is taxable property and in itself would give rise to an unauthorised payments charge (see PTM134100). The following rules do not apply in the case of taxable property held by an investment-regulated pension scheme.

If a car or van is made available to a person who is, or has been, a scheme member, or a member of their family or household, and is available for private use, the person who is, or has been, a member will be taxed on the use of the asset in the same way that an employee would be, if the asset were provided to them by reason of their employment.

The cash equivalent of the car and van benefits are calculated in accordance with Part 3 Chapter 6 of Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), with the exception of car fuel benefit.

Details of how the benefit is calculated can be found in the Employment Income Manual for cars from pages EIM23000 and for vans from EIM22700.

Car fuel

Part 3, Chapter 6 of ITEPA 2003 provides for a separate tax charge on the provision of car fuel available for private use for employees.

Where a person who is, or has been, a scheme member (or a member of their family or household) is provided with private car fuel, instead of using the scale charges applied to employees, the whole payment for fuel is treated as a cash asset and will be taxed as an unauthorised payment - see PTM134100