SE23751 - Car fuel benefit: when the car fuel benefit charge applies

Section 158(1)(3) and (6) ICTA 1988, Section 168(5)(a) ICTA 1988

The car fuel benefit charge applies automatically where by reason of the employment fuel is provided for a car which is made available for private use to a director or employee within Part V Chapter II ICTA88 (or a member of his family or household).

Without limiting the meaning of "fuel is provided" the legislation specifically mentions that fuel is to be regarded as having been provided if

• any liability to pay for fuel is discharged, or
• a non-cash voucher or credit-token is used to obtain it, or
• any sum is paid in respect of expenses incurred in providing fuel for the car.

For this purpose, "car" has the meaning given at SE23020. So the car fuel "scale charge" will not apply when fuel is provided for private use in a van ( SE22130) or other mechanically propelled road vehicle.

The fuel benefit charge applies when any fuel is provided to the employee, even if it is only provided for business use.

The charge is nil if the director or employee shows

• that he is required to make good to the person providing the fuel the whole of the expense of providing it for his private use and in fact does so, or
• that fuel is made available only for business travel.

For the meaning of "private use" and "business travel" see SE23080.

As regards mileage allowances for business travel in a provided car see SE23777.

2003/04 onwards

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