EIM23073 - Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition A

Section 169(3) ITEPA 2003

Before you read this page, check first that the primary condition in EIM23072 is met. If it is not, this page cannot apply.

This is met if equivalent cars (note 1) are made available (note 2) on the same terms (note 3) to employees who:

are in similar employment to M with the same employer (note 4) and
are not members of the family or household of employees of that employer who are employed in non-lower paid employment (note 5).

1	This means equivalent in terms of size, status, age, list price (but not necessarily the same model). The fact that a car that is not equivalent is made available is irrelevant; if an equivalent car is not made available, condition A is not met.
2	This means that such cars are actually made available (a hypothetical statement that a car would be made available in the event that there was a similar employee is insufficient).
3	For example, if the car made available to M is taxed, insured and serviced, the car for the comparable employee will need to include these items. Similar considerations will apply to the presence or absence of private use payments or capital contributions.
4	In similar employment with the same employer. Duties, hours of work and level of remuneration need to be similar in order for this condition to be satisfied (if the only available comparison is with employees of a different employer, condition A cannot be met, but see condition B at EIM23074).
5	In other words, the Section requires a comparison with arrangements at arm’s length where there is no personal relationship to affect matters.

If the primary condition (see EIM23072) and condition A are both met, E is not chargeable for the benefit of the car for that tax year.