SE61020 - Tax treatment of doctors: trainee general practitioners - car allowances

A doctor in family practice who employs a trainee general practitioner may receive an allowance for providing an extra car for the trainee. The rate of allowance is increased from time to time.

The allowance is paid to the practice to which the trainee is attached and the whole or a round sum part will usually be passed on to the trainee for use of his own car. For years up to and including 2001/02 such a payment is taxable under Section 19(1)1 ICTA 1988 and the trainee can make a claim under Section 198(1) ICTA 1988 for any qualifying travelling expenses. For 2002/03 onwards the charge on the payment and relief for any business travel in the trainee’s own car will be dealt with under the approved mileage allowance payments scheme, see SE31200 onwards.

Regarding coding adjustments to allow for the taxable element of trainees' car allowances see EP8480.