SE23501 - Car benefits: calculation of car benefit charge; reduction for periods when car unavailable; meaning of unavailability

Paragraph 9 Schedule 6 ICTA 1988

A car is treated as being "unavailable" on any day if

• the day falls before the first day on which the car is available to the employee,
• the day falls after the last day on which the car is available to the employee, or
• the day falls within a period of 30 consecutive days or more throughout which the car is not available to the employee. (For example, a car may be undergoing extensive repairs at a garage for at least 30 consecutive days.)

This definition of "unavailable" relates solely to the type of period for which a car can be treated as unavailable. It does not attempt to define the underlying circumstances in which a car is either available or not available, which is a separate - although connected - issue. So in considering whether or not there is a period of unavailability which qualifies to reduce the amount of the car benefit charge there are two points to address:

• Is the period itself one that can count as a period of unavailability? (Remember, any interruption in availability of the car must be at least 30 consecutive days to qualify).
• Do the facts show that the car was not available to the employee during that period?

The amount of the car benefit charge for that year of assessment will only be reduced if the answer to both questions is "yes."

The word "available" is not defined in the legislation. Accordingly we apply its ordinary dictionary meaning of "capable of being employed with advantage or turned to account; hence, capable of being made use of, at one's disposal, within one's reach" (Oxford English Dictionary), see SE23081.

Note that there is no reduction if the car remains available to the employee, but the employee is not available to the car for some reason.

See example SE23511 for examples of circumstances when we would accept that a car is not available.

See example SE23512 for examples of circumstances when we would not accept that a car is not available.