SE23305 - Car benefits: calculating the car benefit charge 1994/95 to 1998/99; two or more cars simultaneously - effect on reductions for business mileage
Paragraphs 4 & 10 Schedule 6 ICTA 1988
Where an employee is chargeable in respect of the benefit of two
or more cars which are made available concurrently to that employee
or members of his or her family or household, the reduction for
business travel at
SE23302 only applies to the first car.
The “first car” is the car used to the greatest
extent for the employee's business travel.
The full benefit charge of the second car is only reduced if
the employee also used it for 18,000 business miles or more (or the
proportional part - as at
SE23304) - but the reduction then is only
1/3rd. (See example
SE23312)
So the table at SE23302 is extended as follows to take
account of second and subsequent cars.
| Business Travel (Miles) | Amount of reduction for first car
| Amount of reduction for additional car(s)
|
| Less than 2,500 | Nil | Nil |
| 2,500-17,999 | 1/3 | Nil |
| 18,000 or over | 2/3 | 1/3 |
Note that this rule applies irrespective of whether the two (or
more) cars come from the same employer or from different employers.
In practice it will be very unusual to find an employee with
two cars available at the same time, each of which that employee
uses for at least 18,000 business miles in the year.
