SE23766 - Car fuel benefit: 2003/04 onwards: measure of the benefit

Section 158 ICTA 1988 as amended by section 34 FA 2002

See SE23765 for a summary of changes to the fuel benefit charge from 2003/04 onwards.

Years to 2002/03

The benefit was calculated by use of scale charges (e.g. SE23761).

Years from 2003/04

The benefit is calculated by multiplying a set sum (for 2003/04, this was set by FA 2002 at £14,400) by the appropriate percentage used to calculate the car benefit charge. Relevant guidance on the car benefit charge and the appropriate percentage starts at SE23350.

The appropriate percentage therefore includes all supplements and reductions, so takes account of different fuels.

The only exception is vehicles propelled by electricity only (type E, SE23435) for which no fuel benefit charge is made.

Set amounts for later years will be in the EIM (Employment Income Manual) as announced.

Example

A car has an appropriate percentage of 20% and is made available to the same employee for the whole of 2003/04.

The fuel benefit charge for 2003/04 is £2,880 (£14,400 20%).

2003/04 onwards

For full guidance see the contents page at EIM23750CT.