SE23062 - Car benefits: meaning of made available by reason of the employment - car made available by someone other than the employer

Section 157(1) ICTA 1988

A car is sometimes provided by someone other than the employer. Where this is the case, 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 for an explanation of how to apply this test). There will still be a car benefit charge if the facts show that the car is made available by “reason of the employment”.

For instance some car dealers will provide cars for playing members of Country Cricket or leading football teams. The cars - which often carry some advertising material - would not be provided but for the recipient's employment as a sportsperson. In such circumstances the car will attract the appropriate car benefit charge.