SE23003 - Car benefits: exceptions from the charge

Section 159 ICTA 1988 and Section 168(6)(a) ICTA 1988

There are two situations where no car benefit charge will arise in respect of a car that is actually used by an employee or director who comes within the benefits rules of part V chapter II ICTA 1988. These are where the car in question

• satisfies all the conditions to be treated as a pooled car for tax purposes (see SE23800 onwards), or
• is one that the employee is specifically prohibited from using for private purposes and which is not so used - see SE23081.