Car benefit applies when all the following conditions are met.

• A car (as defined at EIM23020)
• is made available (as defined at EIM23050)
• for private use (which means for use other than for business travel)
• to an employee who is not in an excluded employment (as defined at EIM20007)
• (or to members of the employee's family or household) (as defined at EIM20504)
• by reason of that employment (as defined at EIM23060 onwards)
• without any transfer of the property in it (as defined at EIM23053)
• and the benefit is not otherwise taxable (for more guidance look at EIM23008).

Exceptions

There are the following exceptions:

• where the car is a 'pooled car' (as defined at EIM23800 onwards)
• where the ownership of the car is transferred to the employee (for the effect of doing so look at EIM23550)
• where private use is prohibited and there is no actual private use (the conditions to be met are described at EIM23081)
• where a car is not made available for a member of the employee's family or household on business grounds but in the normal course of domestic, family or personal relationships (for further guidance look at EIM23061 and NIM16030)
• where a car is made available for a member of the employee's family or household in other qualifying circumstances (for a description look at EIM23070 and NIM16030)
• for disabled employees, in specified circumstances. There may be an exemption from the benefit charge, or the charge may be reduced.

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