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

EIM23001

Car benefit: general

EIM23002

Car benefit: when the charge applies: general

EIM23003

Car benefit: exceptions

EIM23004

Car benefit: scope of the charge

EIM23005

Car benefit: prohibition on other tax charges where car benefit charge applies

EIM23006

Car benefit: is an employee chargeable under the benefits code?: effect of expenses, etc. paid in connection with a provided car

EIM23007

Car benefit: expense of a chauffeur

EIM23008

Car benefit: benefit not otherwise taxable

EIM23009

Car and car fuel benefits: Class 1A National Insurance contributions payable by employers

EIM23010

Car and car fuel benefits: fair bargain

EIM23011

Car benefit: special rules for disabled drivers

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

B1. The vehicle must be a car

EIM23020

Car benefit: meaning of car

EIM23020a

Car benefit: meaning of car: flowchart

EIM23021

Car benefit: car or van - summary

EIM23030

Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of construction

EIM23031

Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of primarily suited

EIM23040

Car benefit: vehicle of a type not commonly used as a private vehicle and unsuitable to be so used: meaning of type

EIM23041

Car benefit: meaning of not commonly used as a private vehicle

EIM23042

Car benefit: meaning of unsuitable for use as a private vehicle

EIM23043

Car benefit: meaning of unsuitable for use as a private vehicle: emergency vehicles

EIM23044

Car benefit: off road vehicles

EIM23045

Car benefit: double cab pick ups

EIM23046

Car benefit: meaning of car: submissions to Personal Tax

EIM23047

Car benefit: emergency vehicles exemption from 2004/05: conditions 1-3

EIM23048

Car benefit: emergency vehicles exemption from 2004/05: conditions 4-5

EIM23049

Car benefit: other specific types of vehicle

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

EIM23050

Car benefit: meaning of made available

EIM23053

Car benefit: meaning of without any transfer of the property in it - part ownership

EIM23054

Car benefit: meaning of without any transfer of the property in it - car leased to director or employee

EIM23055

Car benefit: employee car purchase schemes

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

EIM23060

Car benefits: meaning of by reason of the employment

EIM23061

Car benefits: meaning of by reason of the employment: car made available by the employer

EIM23062

Car 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

EIM23070

Car benefit: car made available to more than one member of family or household employed by the same employer

EIM23071

Car benefit: car made available to more than one member of family or household employed by the same employer: two charges for one car?

EIM23072

Car benefit: car made available to more than one member of family or household employed by the same employer: primary condition

EIM23073

Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition A

EIM23074

Car 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

EIM23080

Car benefits: meaning of private use and business travel

EIM23081

Car benefit: meaning of available

EIM23082

Car benefits: prohibition of private use

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

EIM23100

Car benefit: calculation: introduction

EIM23101

Car benefit: calculation: method statement

EIM23105

Car 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

EIM23110

Car benefits: price of the car: introduction

EIM23111

Car benefits: price of the car - step by step guide

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

EIM23120

Car benefit: price of the car: list price or notional price

EIM23121

Car benefit: list price

EIM23122

Car benefit: list price: manufacturer, importer or distributor

EIM23123

Car benefit: price of the car: imported cars

EIM23124

Car benefit: Carbon Offset Charges

EIM23130

Car benefit: notional price

EIM23131

Car benefit: notional price - particular cars

EIM23135

Car benefit: price of the car: exception: cars manufactured to run on road fuel gas

EIM23137

Car benefit: price of the car: automatic car for use by a disabled employee

C3. Step 2 of Section 121 ITEPA 2003: accessories

EIM23140

Car benefit: accessories: introduction

EIM23141

Car benefit: accessory: qualifying accessory (definitions)

EIM23142

Car benefit: standard accessory (definition)

EIM23143

Car benefit: initial extra accessory, later accessory (definitions)

EIM23144

Car benefit: accessory: list price, notional price (definitions)

EIM23145

Car benefit: accessory: conditions when determining list or notional price (part 1)

EIM23146

Car benefit: accessory: conditions when determining list or notional price (part 2)

EIM23150

Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the car

EIM23151

Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the accessory

EIM23152

Car benefit: initial extra accessory with notional price

EIM23160

Car benefit: later accessory

EIM23170

Car benefit: replacement accessories: general

EIM23171

Car benefit: replacement accessories: new accessory not superior to old

EIM23172

Car benefit: replacement accessories: new accessory superior to old

EIM23180

Car benefit: accessories: exceptions: equipment necessarily provided for use in the performance of the duties

EIM23181

Car benefit: accessories: exceptions: equipment for disabled persons

EIM23182

Car benefit: accessories: exceptions: cost of converting car to run on road fuel gas

EIM23183

Car benefit: accessories: exceptions: miscellaneous

EIM23184

Car benefit: accessories: personalised car number plates

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

EIM23190

Car benefit: definition and effect of capital contributions

EIM23191

Car benefit: capital contributions: the amount deductible

EIM23192

Car benefit: capital contributions: years when deduction is allowed

EIM23193

Car benefit: repayments of capital contributions

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

EIM23200

Car benefit: classic car: definition

EIM23202

Car benefit: classic car: market value

EIM23203

Car benefit: classic car: capital contributions

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

EIM23205

Car benefit: price cap for expensive cars (to 2010/11 only)

C7. Steps 1 to 4: examples of calculation

EIM23210

Car benefit: calculation: steps 1 to 4: list price: example

EIM23211

Car benefit: calculation: steps 1 to 4: classic car: example

EIM23212

Car benefit: calculation: steps 1 to 4: notional price: example

EIM23220

Car benefit: repayments of capital contributions: example

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

EIM23350

Car benefit: appropriate percentage: introduction

EIM23360

Car benefit: when does a car have an approved CO2 emissions figure?

EIM23365

Car benefit: approved CO2 emissions figure: car first registered in the UK from 1 January 1998 to 28 February 2001

EIM23370

Car benefit: finding the approved CO2 emissions figure: car first registered in the UK from 1 March 2001 onwards

EIM23375

Car benefit: approved CO2 emissions figure: car first registered in other EU countries

EIM23380

Car benefit: approved CO2 emissions figure: car imported from outside the EU

EIM23385

Car benefit: approved CO2 emissions figure: more unusual models

EIM23390

Car benefit: approved CO2 emissions figure: cases of difficulty

EIM23400

Car benefit: car with an approved CO2 emissions figure: overview

EIM23402

Car benefit: qualifying low emissions cars (QUALECs)

EIM23403

Car benefit: emissions figure to be a qualifying low emissions car (QUALEC)

EIM23405

Car benefit: car with an approved CO2 emissions figure: lower threshold

EIM23410

Car benefit: appropriate percentage, ready reckoner for petrol-powered cars to 2010/11 (type P)

EIM23411

Car benefit: appropriate percentage, ready reckoner for all except electric-only and diesel cars from 2011/12 (type A)

EIM23415

Car benefit: car without approved CO2 emissions figure but first registered on 1 January 1998 or later

EIM23420

Car benefit: table summarising adjustments to appropriate percentage for different fuels (2002/03 to 2005/06)

EIM23421

Car benefit: table summarising adjustments to appropriate percentage for different fuels (2006/07 onwards)

EIM23422

Car benefit from 2011/12: adjustments to appropriate percentage and code letter used for different fuels

EIM23425

Car benefit: diesel cars up to and including Euro III (type D until 2010/11)

EIM23430

Car benefit: Euro IV and Euro 5 diesels (type L to 2010/11)

EIM23435

Car benefit: electric cars (type E)

EIM23440

Car benefit: hybrid electric/petrol cars (type H)

EIM23445

Car benefit: type B cars for years 2002/03 to 2010/11

EIM23450

Car benefit: type C cars for years 2002/03 to 2010/11

EIM23455

Car benefit: type G cars (those manufactured to run on E85 fuel) for years 2008/09 to 2010/11

EIM23460

Car benefit from 2011/12: diesel cars (type D)

EIM23465

Car benefit from 2011/12: all cars except types E and D (electric-only and diesel) - type A

EIM23470

Car benefit: car with an approved CO2 emissions figure: automatic car for use by disabled employees

EIM23471

Car benefit: meaning of automatic transmission

EIM23480

Car benefit: car first registered before 1 January 1998

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

EIM23489

Car benefit: step 6 of the Section 121(1) ITEPA 2003 method statement

EIM23490

Car benefit: calculation for 2002/03 to 2010/11: petrol car with approved CO2 emissions figure (type P): example

EIM23491

Car benefit: calculation for 2002/03 to 2010/11: diesel car with approved CO2 emissions figure (type D): example

EIM23492

Car benefit: calculation for 2002/03 to 2010/11: hybrid petrol/electric car (type H): example

EIM23493

Car benefit: calculation for 2002/03 to 2010/11: bi-fuel LPG car with approved gas CO2 emissions figure (type B): example

EIM23494

Car benefit: calculation for 2002/03 to 2010/11: bi-fuel LPG car with no approved gas CO2 emissions figure (type C): example

EIM23495

Car benefit: calculation for 2002/03 to 2010/11: diesel car approved to Euro IV or Euro 5 limits (type L): example

EIM23496

Car benefit: calculation for 2002/03 to 2010/11: car manufactured to run on E85 fuel (type G): example

EIM23497

Car benefit: calculation for 2011/12 onwards: diesel car (type D): example

EIM23498

Car benefit: calculation for 2011/12 onwards: all cars except types E and D (electric-only and diesel) - type A: example

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

EIM23500

Car benefit: calculation of charge: reduction for periods when car unavailable

EIM23501

Car benefit: calculation of charge: reduction for periods when car unavailable: meaning of unavailable

EIM23502

Car benefit: calculation of charge: replacement car

EIM23503

Car benefit: replacement car: meaning of materially better

EIM23504

Car benefit: replacement car: meaning of arrangement

EIM23510

Car benefit: reduction because car unavailable: example

EIM23511

Car benefit: circumstances when car is unavailable: example

EIM23512

Car benefit: circumstances when car is not unavailable: example

EIM23513

Car benefit: replacement car: circumstances that do not count as arrangements: example

EIM23514

Car benefit: replacement car: circumstances that do count as arrangements: example

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

EIM23520

Car benefit: shared car

EIM23521

Car 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

EIM23530

Car benefit: calculation of charge: deduction for payments for private use of the car

EIM23531

Car benefit: calculation of charge: deduction for payments for private use of the car: payments for specific supplies or services

EIM23532

Car benefit: calculation of charge: deduction for payments for private use of the car: payments for a more expensive car

EIM23533

Car benefit: calculation of charge: deduction for payments for private use of the car: cases of doubt

EIM23547

Car benefit: calculation of charge: price of car and accessories, unavailability and payments for private use: example

D1. Car benefits: miscellaneous points

EIM23550

Car benefit miscellaneous: transfer of ownership of the car to the employee

EIM23555

Car benefit miscellaneous: cars available after employment ceases

EIM23600

Car benefit miscellaneous: cars provided for home to work and training travel of disabled employees

EIM23601

Car benefit miscellaneous: transport between home and work for disabled employees

D2. Car benefits: special situations - employees in the motor industry (to 2008/09)

EIM23640

Car benefit miscellaneous: employees in the motor industry (to 2008/09): when is there a car benefit charge?

EIM23641

Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: calculating the car benefit charge

EIM23642

Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: price of notional car

EIM23643

Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: CO2 emissions of the notional car

EIM23644

Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: procedures and record-keeping.

EIM23645

Car benefits miscellaneous: employees in the motor industry (to 2008/09): special treatment

D3. Car benefits: special situations - employees in the motor industry (from 2009/10)

EIM23650

Car benefit miscellaneous: employees in the motor industry (from 2009/10): when is there a car benefit charge?

EIM23651

Car benefit miscellaneous: test and experimental cars (from 2009/10): when is there a car benefit charge?

EIM23652

Car benefit miscellaneous: demonstration and courtesy cars (from 2009/10): when is there a car benefit charge?

EIM23653

Car benefit: employees with frequent changes of car (from 2009/10) - “averaging” - introduction

EIM23654

Car benefit: employees with frequent changes of car (from 2009/10) - requests for special treatment

EIM23655

Car benefit: employees with frequent changes of car (from 2009/10) - averaging process: outline

EIM23656

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 1: identify the cars to be subject to averaging

EIM23657

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging cars without a CO2 emissions figure

EIM23658

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 2: group the cars subject to averaging

EIM23659

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 3: average price of notional car

EIM23660

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 4: average CO2 emissions and appropriate percentage of notional car

EIM23661

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 5: benefit charge of notional car

EIM23662

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 6: identify qualifying employees at each location

EIM23663

Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 7: allocate qualifying employees to the notional cars

EIM23664

Car benefit: employees with frequent changes of car (from 2009/10) - benefit charge of notional car - example

EIM23665

Car benefit: employees with frequent changes of car (from 2009/10) - practical issues

EIM23666

Car benefit: employees with frequent changes of car (from 2009/10) - procedures and record-keeping

EIM23667

Car benefit: employees with frequent changes of car (from 2009/10) - car fuel benefit

E. Car fuel benefit, and

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

EIM23700

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