SE23781 - Car fuel benefit: reduction when car is unavailable: example

Section 158(5) ICTA 1988

On 1 November an employer provides an employee who is within Part V Chapter II ICTA88 with a car on condition that the employee pays for all petrol for private use.

This condition remains in place until January of the same tax year when the employer agrees to pay for all petrol for business and private use.

The employee is chargeable for that tax year for the full period 1 November to 5 April as follows.

Car benefit charge - reduced by 209/365 in respect of period of unavailability 6 April to 31 October.

Car fuel benefit charge - reduced by 209/365 in respect of period of unavailability of car 6 April to 31 October.

Although fuel for private use is only provided from the 1 January of the tax year, the car fuel benefit charge is based on the number of days the car is available during the year.

2003/04 onwards

For reductions where free fuel is withdrawn and not reinstated for the same car in the same tax year, see SE23767. Note that this only applies from 2003/04 onwards. The car fuel benefit has a different basis for these years. See the contents page at EIM23700.