SE23324 - Car benefits: calculating the car benefit charge 99/2000 to 2001/02; percentages of list price for different business mileage bands; two or more cars simultaneously - effect on business mileage bands

Paragraph 4 and 10 Schedule 6 ICTA 1988

Where an employee is chargeable in respect of the benefit of two or more cars which are made available concurrently to the employee or the members of his or her family or household, the percentages set out in the table at SE23321 only apply to the first car.

The 'first car' is the car used to the greatest extent for the employee's business travel.

Different percentages apply for second and subsequent cars.

• The percentage used will be 35% where the employee uses the car for up to 17,999 miles of business travel.
• It will be 25% where the employee also used it for 18,000 or more miles of business travel (or the proportional part - as at SE23323). See example SE23317)

So the table at SE23321 is extended as follows to take account of second and subsequent cars.

Note that this rule applies irrespective of whether the two (or more) cars come from the same employer or from different employers.

In practice it will be very unusual to find an employee with two cars available at the same time, each of which that employee uses for at least 18,000 business miles in the year.