SE23500 - Car benefits: calculation of car benefit charge; reduction for periods when car unavailable

Paragraph 6 Schedule 6 ICTA 1988

When the car is unavailable for any part of the year, the chargeable benefit is reduced in proportion to the number of days during the year when it was unavailable. For years between 1994/95 and 2001/02 only, the reduction is made after taking into account business mileage and age. See example SE23510.

In calculating the reduction for unavailability, the car benefit charge is reduced in proportion to the precise number of days for which the car was unavailable. For years to 2002/03, the number of days to be used as the denominator in the calculation of the proportion is always 365 – even in a leap year (see example SE23510).

See also SE23304 (1994/95 to 1998/99) and SE23323 (1999/2000 to 2001/02) for the effect on the business mileage thresholds.

See SE23501 for the meaning of “unavailable”.