EIM23000 - The benefits code: cars available for private use to directors and employees not in lower paid employment: brief description: table of contents

A. Introduction to the car benefit charge: how the charge works and what it covers

EIM23001Car benefit: general
EIM23002Car benefit: when the charge applies: general
EIM23003Car benefit: exceptions
EIM23004Car benefit: scope of the charge
EIM23005Car benefit: prohibition on other tax charges where car benefit charge applies
EIM23006Car benefit: is an employee chargeable under the benefits code?: effect of expenses, etc. paid in connection with a provided car
EIM23007Car benefit: expense of a chauffeur
EIM23008Car benefit: benefit not otherwise taxable
EIM23009Car and car fuel benefits: Class 1A National Insurance contributions payable by employers
EIM23010Car and car fuel benefits: fair bargain

B. Review of the main conditions for the car benefit charge to apply

B1. The vehicle must be a car

EIM23020Car benefit: meaning of car
EIM23020aCar benefit: meaning of car: flowchart
EIM23021Car benefit: car or van - summary
EIM23030Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of construction
EIM23031Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of primarily suited
EIM23040Car benefit: vehicle of a type not commonly used as a private vehicle and unsuitable to be so used: meaning of type
EIM23041Car benefit: meaning of not commonly used as a private vehicle
EIM23042Car benefit: meaning of unsuitable for use as a private vehicle
EIM23043Car benefit: meaning of unsuitable for use as a private vehicle: emergency vehicles
EIM23044Car benefit: off road vehicles
EIM23045Car benefit: double cab pick ups
EIM23046Car benefit: meaning of car: submissions to Personal Tax
EIM23047Car benefit: emergency vehicles exemption from 2004/05: conditions 1-3
EIM23048Car benefit: emergency vehicles exemption from 2004/05: conditions 4-5
EIM23049Car benefit: other specific types of vehicle

B2. The car must be made available without any transfer of the property in it

EIM23050Car benefit: meaning of made available
EIM23053Car benefit: meaning of without any transfer of the property in it - part ownership
EIM23055Car benefit: employee car purchase schemes

B3. The car must be made available by reason of the employee's employment

EIM23060Car benefits: meaning of by reason of the employment
EIM23061Car benefits: meaning of by reason of the employment: car made available by the employer
EIM23062Car benefits: meaning of by reason of the employment: car made available by someone other than the employer

B4. Removal of the car benefit charge when made available to a family member by reason of the employee's employment

EIM23070Car benefit: car made available to more than one member of family or household employed by the same employer
EIM23071Car benefit: car made available to more than one member of family or household employed by the same employer: two charges for one car?
EIM23072Car benefit: car made available to more than one member of family or household employed by the same employer: primary condition
EIM23073Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition A
EIM23074Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition B

B5. The vehicle must be available for private use

EIM23080Car benefits: meaning of private use and business travel
EIM23081Car benefit: meaning of available
EIM23082Car benefits: prohibition of private use

C. Calculating the amount of the car benefit charge: introduction

EIM23100Car benefit: calculation: introduction
EIM23101Car benefit: calculation: method statement
EIM23105Car benefit: bi-fuel or road fuel gas cars (types B and C) - overview

C1. Steps 1 to 4 of Section 121 ITEPA 2003: price of the car and accessories

EIM23110Car benefits: price of the car: introduction
EIM23111Car benefits: price of the car – step by step guide

C2. Step 1 of Section 121 ITEPA 2003: price of the car

EIM23120Car benefit: price of the car: list price or notional price
EIM23121Car benefit: list price
EIM23122Car benefit: list price: manufacturer, importer or distributor
EIM23123Car benefit: price of the car: imported cars
EIM23124Car benefit: Carbon Offset Charges
EIM23130Car benefit: notional price
EIM23131Car benefit: notional price - particular cars
EIM23135Car benefit: price of the car: exception: cars manufactured to run on road fuel gas

C3. Step 2 of Section 121 ITEPA 2003: accessories

EIM23140Car benefit: accessories: introduction
EIM23141Car benefit: accessory: qualifying accessory (definitions)
EIM23142Car benefit: standard accessory (definition)
EIM23143Car benefit: initial extra accessory, later accessory (definitions)
EIM23144Car benefit: accessory: list price, notional price (definitions)
EIM23145Car benefit: accessory: conditions when determining list or notional price (part 1)
EIM23146Car benefit: accessory: conditions when determining list or notional price (part 2)
EIM23150Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the car
EIM23151Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the accessory
EIM23152Car benefit: initial extra accessory with notional price
EIM23160Car benefit: later accessory
EIM23170Car benefit: replacement accessories: general
EIM23171Car benefit: replacement accessories: new accessory not superior to old
EIM23172Car benefit: replacement accessories: new accessory superior to old
EIM23180Car benefit: accessories: exceptions: equipment necessarily provided for use in the performance of the duties
EIM23181Car benefit: accessories: exceptions: equipment for disabled persons
EIM23182Car benefit: accessories: exceptions: cost of converting car to run on road fuel gas
EIM23183Car benefit: accessories: exceptions: miscellaneous
EIM23184Car benefit: accessories: personalised car number plates

C4. Step 3 of Section 121 ITEPA 2003: capital contributions

EIM23190Car benefit: definition and effect of capital contributions
EIM23191Car benefit: capital contributions: the amount deductible
EIM23192Car benefit: capital contributions: years when deduction is allowed
EIM23193Car benefit: repayments of capital contributions

C5. Classic cars (effect at step 3 of Section 121 ITEPA 2003)

EIM23200Car benefit: classic car: definition
EIM23202Car benefit: classic car: market value
EIM23203Car benefit: classic car: capital contributions

C6. Step 4 of Section 121 ITEPA 2003: price cap for expensive cars

EIM23205Car benefit: price cap for expensive cars

C7. Steps 1 to 4: examples of calculation

EIM23210Car benefit: calculation: steps 1 to 4: list price: example
EIM23211Car benefit: calculation: steps 1 to 4: classic car: example
EIM23212Car benefit: calculation: steps 1 to 4: notional price: example
EIM23220Car benefit: repayments of capital contributions: example

C8. Step 5 of Section 121 ITEPA 2003: the appropriate percentage

EIM23350Car benefit: appropriate percentage: introduction
EIM23360Car benefit: when does a car have an approved CO2 emissions figure?
EIM23365Car benefit: approved CO2 emissions figure: car first registered in the UK from 1 January 1998 to 28 February 2001
EIM23370Car benefit: finding the approved CO2 emissions figure: car first registered in the UK from 1 March 2001 onwards
EIM23375Car benefit: approved CO2 emissions figure: car first registered in other EU countries
EIM23380Car benefit: approved CO2 emissions figure: car imported from outside the EU
EIM23385Car benefit: approved CO2 emissions figure: more unusual models
EIM23390Car benefit: approved CO2 emissions figure: cases of difficulty
EIM23400Car benefit: car with an approved CO2 emissions figure: overview
EIM23402Car benefit: qualifying low emissions cars (QUALECs)
EIM23403Car benefit: emissions figure to be a qualifying low emissions car (QUALEC)
EIM23405Car benefit: car with an approved CO2 emissions figure: lower threshold
EIM23410Car benefit: appropriate percentage, ready reckoner for petrol-powered cars (type P)
EIM23415Car benefit: car without approved CO2 emissions figure but first registered on 1 January 1998 or later
EIM23420Car benefit: table summarising adjustments to appropriate percentage for different fuels (2002/03 to 2005/06)
EIM23421Car benefit: table summarising adjustments to appropriate percentage for different fuels (2006/07 onwards)
EIM23425Car benefit: non-Euro IV diesel cars (type D)
EIM23430Car benefit: Euro IV diesels (type L)
EIM23435Car benefit: electric cars (type E)
EIM23440Car benefit: hybrid electric/petrol cars (type H)
EIM23445Car benefit: type B cars
EIM23450Car benefit: type C cars
EIM23455Car benefit: type G cars (those manufactured to run on E85 fuel)
EIM23470Car benefit: car with an approved CO2 emissions figure: automatic car for use by disabled employees
EIM23480Car benefit: car first registered before 1 January 1998

C9. Step 6 of Section 121 ITEPA 2003 and examples of steps 5 and 6

EIM23489Car benefit: step 6 of the Section 121(1) ITEPA 2003 method statement
EIM23490Car benefit: calculation for petrol car with approved CO2 emissions figure (type P): example
EIM23491Car benefit: calculation for diesel car with approved CO2 emissions figure (type D): example
EIM23492Car benefit: calculation for hybrid petrol/electric car (type H): example
EIM23493Car benefit: calculation for bi-fuel LPG car with approved gas CO2 emissions figure (type B): example
EIM23494Car benefit: calculation for bi-fuel LPG car with no approved gas CO2 emissions figure (type C): example
EIM23495Car benefit: calculation for diesel car approved to Euro IV limits (type L): example
EIM23496Car benefit: calculation for car manufactured to run on E85 fuel (type G): example

C10. Step 7 of Section 121 ITEPA 2003: effect of periods of unavailability on the car benefit charge

EIM23500Car benefit: calculation of charge: reduction for periods when car unavailable
EIM23501Car benefit: calculation of charge: reduction for periods when car unavailable: meaning of unavailable
EIM23502Car benefit: calculation of charge: replacement car
EIM23503Car benefit: replacement car: meaning of materially better
EIM23504Car benefit: replacement car: meaning of arrangement
EIM23510Car benefit: reduction because car unavailable: example
EIM23511Car benefit: circumstances when car is unavailable: example
EIM23512Car benefit: circumstances when car is not unavailable: example
EIM23513Car benefit: replacement car: circumstances that do not count as arrangements: example
EIM23514Car benefit: replacement car: circumstances that do count as arrangements: example

C11. “Step 7A” – actually Section 148 ITEPA 2003: shared cars

EIM23520Car benefit: shared car
EIM23521Car benefit: shared car: employees to be disregarded: just and reasonable basis

C12. Step 8 of Section 121 ITEPA 2003: effect of payments for private use on the car benefit charge

EIM23530Car benefit: calculation of charge: deduction for payments for private use of the car
EIM23531Car benefit: calculation of charge: deduction for payments for private use of the car: payments for specific supplies or services
EIM23532Car benefit: calculation of charge: deduction for payments for private use of the car: payments for a more expensive car
EIM23533Car benefit: calculation of charge: deduction for payments for private use of the car: cases of doubt
EIM23547Car benefit: calculation of charge: price of car and accessories, unavailability and payments for private use: example

D. Car benefits: miscellaneous points and special situations

EIM23550Car benefit miscellaneous: transfer of ownership of the car to the employee
EIM23555Car benefit miscellaneous: cars available after employment ceases
EIM23600Car benefit miscellaneous: cars provided for home to work and training travel of disabled employees
EIM23601Car benefit miscellaneous: transport between home and work for disabled employees
EIM23640Car benefit miscellaneous: employees in the motor industry: when is there a car benefit charge?
EIM23641Car benefit miscellaneous: employees in the motor industry: frequent changes of car: calculating the car benefit charge
EIM23642Car benefit miscellaneous: employees in the motor industry: frequent changes of car: price of notional car
EIM23643Car benefit miscellaneous: employees in the motor industry: frequent changes of car: CO2 emissions of the notional car
EIM23644Car benefit miscellaneous: employees in the motor industry: frequent changes of car: procedures and record-keeping.
EIM23645Car benefits miscellaneous: employees in the motor industry: special treatment

E. Car fuel benefit, and

F. Pooled cars and vans: special rules that can remove the car and van benefit charges

EIM23700Contents page