SE23005 - Car benefits: prohibition on other tax charges where car benefits charge applies

Section 154(2)(b), Section 155(1) and Section 157(3) ICTA 1988

Apart from the provision of car fuel, a chauffeur or a mobile telephone with the car (see SE23004) the legislation limits the taxable benefit of its availability for private use.

When the benefit of a car is charged under Section 157 (1) ICTA 1988 it is excluded from the general charging provision relating to benefits in Section 154 ICTA 1988. There is also no charge under Section 154 ICTA 1988 on any benefit in connection with the car (apart from the benefit of the provision of a driver for the car). That means that a benefit charge cannot also be made on the provision of, say, insurance for the car.

But this exemption from charge under Section 154 ICTA 1988 for benefits in connection with the car does not extend to benefits which could be enjoyed by the employee whether using a car provided by his employer or a car of his own. For example the provision of a season ticket for a toll bridge.

There is also legislation forbidding any charge under other Schedule E provisions in addition to the car benefit charge for

• the discharge of any liability of the employee in connection with the car ( SE00580 onwards)
• the use of a non-cash voucher or credit-token to obtain goods or services in connection with the car ( SE16100)
• the reimbursement by the employer (or other person acting on behalf of the employer) of expenses incurred by the employee in connection with the car ( SE20601).

So, for example there would be no charge under Schedule E if the employer provided the employee with car wash vouchers for a car that attracts a car benefit charge. (See SE32440 and SE23531 for details of the tax treatment that applies if the employee incurs car washing expenses that are not met by the employer).

For car telephones see SE21780 onwards.

For car parking at or near the employee's place of employment see SE21685.

For personalised number plates see SE23156.