SE23771 - Car fuel benefit: inclusive scope

Section 157(3) ICTA 1988

The car fuel benefit (whether calculated by a scale charge or from the appropriate percentage) replaces any tax liability that would otherwise arise in respect of fuel supplied for a car available for private use.

Thus, a tax charge does not arise in addition to the car fuel benefit charge where

• the employer (or another person acting on the employer's behalf) settles a debt incurred for fuel for the car, or
• the fuel is obtained for the car by means of vouchers or by way of a credit card provided by reason of the employment, or
• the employer reimburses the cost of fuel for private use.

2003/04 onwards

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