SE23772 - Car fuel benefit: "all or nothing" tax charge

Car fuel benefit is an "all or nothing" measure. It is not related to the actual cost of providing the fuel.

The benefit charge is not reduced pound for pound to the extent that the director or employee within Part V Chapter II ICTA88 "makes good" the fuel provided.

If the individual makes good the cost of all the fuel provided for private use the car fuel benefit is nil.

If the individual fails to make good the cost of all the fuel provided for private use the full amount of the car fuel benefit is chargeable.

2003/04 onwards

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