SE23750 - Car fuel benefit: general

Section 158 ICTA 1988

Where fuel is provided for a car which attracts a car benefit charge (see SE23001 onwards) a tax charge will arise on the fuel. The tax charge on the fuel

• operates by way of a flat rate "scale charge" (years 1987/88 to 2002/03) and by a percentage of a set charge (2003/04 onwards)
• is in addition to the relevant car benefit charge
• applies automatically unless it can be shown that

Note that it is possible for the charge on fuel to apply even if there is no taxable amount of car benefit. For instance, where the car is made available for private use, so that there is a car benefit charge, the cash equivalent of that car benefit might be reduced to nil as a result of payments made by the director or employee within Part V Chapter II ICTA88 for the private use of the car (see SE23530). If fuel was provided for private motoring in that car and the employee did not make good all that fuel the full car fuel benefit charge applies.

1993/94 and earlier years

Information on these years (pages SE23849 to SE23891 inclusive) was removed from the SE Manual in 2003.

If you require copies of any of that information, please contact the Employment Income Technical Helpline in the first instance (enquiries from outside HMRC should be made to a local HMRC Office, referring to this guidance).

2003/04 onwards

The car fuel benefit has a different basis for these years. See the contents page at EIM23700.