SE23060 - Car benefits: meaning of made available by reason of the employment

Section 157(1) ICTA 1988 and Section 168(6)(b) ICTA 1988

For the benefit charge to be triggered the car must be made available by reason of the employment.

A car is deemed to be made available “by reason of [the employee’s] employment” if:

• it is made available by the employer to a director or employee within Part V Chapter II ICTA88, or
• it is made available by the employer to members of the director’s or employee’s family or household

If a car is not made available by the employee’s employer, it does not mean that it is not made available by reason of the employment. It simply means that Section 168(6)(b) does not automatically deem it to be made available by reason of the employee’s employment.

So if a car is made available by someone other than the employer you need to examine all the relevant facts and circumstances to decide whether it has in fact been made available by reason of the employment. See SE20503.