EIM23771 - Car fuel benefit: example 2: reduction if car unavailable

Section 152 ITEPA 2003

This example illustrates the principles at EIM23763.

Example

The car in EIM23770 is not made available to the employee until 1 July 2003. It is therefore not available from 6 April to 30 June 2003 inclusive (86 days out of 366; note that 2003/04 is a leap year).

Using the formula at EIM23763, the reduced benefit is:

£2,880x

(366 – 86)

=

£2,203

366

There is a more complex example at EIM23773.

Years prior to 2003/04

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