EIM23760 - Car fuel benefit: calculating the cash equivalent

Section 150 ITEPA 2003

The car fuel benefit charge is incurred as detailed at EIM23750.

The cash equivalent of the charge is reduced to nil for a particular tax year if either of the conditions in EIM23761 is met.

Otherwise, the cash equivalent:

• is calculated for a full tax year as shown at EIM23762
• is then reduced proportionately if the car is unavailable for part of the year, see EIM23763 and
• can also be reduced if free fuel is withdrawn in a tax year and not reinstated, see EIM23764 and
• can also be correspondingly reduced if a reduction is made to the cash equivalent of the benefit of a car to an employee because the car is shared, see EIM23765.

Years prior to 2003/04

The fuel benefit charge had a different basis in these years. See the contents page at SE23750CO for details.