SE23775 - Car fuel benefit: partial reduction: car unavailable for private use

Section 158(5) and Schedule 6 paragraph 6 ICTA 1988

Where a car is not available to a director or employee for any part of the tax year the car fuel benefit charge is reduced proportionately in the same way as the car benefit charge (see SE23500 onwards).

Note that this reduction applies when it is the car which is not available for a period. If the car was available throughout the year the full car fuel benefit charge applies even if fuel was only provided for part of the year. This is because the car fuel benefit charge is an "all or nothing" measure (see SE23772). (See example SE23781).

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For reductions where free fuel is withdrawn and not reinstated for the same car in the same tax year, see SE23767.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.