EIM25560 - Car fuel benefit: cash equivalent for a full year

Section 150 ITEPA 2003

»Ê¹ÚÌåÓýapp car fuel benefit charge is incurred as detailed at EIM25510.

Basic rule: charge for a full year

»Ê¹ÚÌåÓýapp cash equivalent for a full tax year is calculated by multiplying:

  • a fixed sum, set for each tax year by Section 150(1) ITEPA 2003 (see EIM25580)
  • by the same appropriate percentage used at step 5 of the method statement in Section 121(1) ITEPA 2003 to calculate the car benefit charge. Relevant guidance on the car benefit charge and the appropriate percentage starts at EIM24500. »Ê¹ÚÌåÓýapp appropriate percentage calculated from a notional CO2 emissions figure agreed under EIM23765 (years to 2008/09) or EIM23850 (years from 2009/10) should be used wherever this applies.

»Ê¹ÚÌåÓýapp appropriate percentage therefore includes all supplements and reductions, so takes account of different fuels.

»Ê¹ÚÌåÓýapp only exception is for vehicles propelled by electricity only (type E, see EIM24815) for which no fuel benefit charge is made.

Example

»Ê¹ÚÌåÓýappre is an example at EIM25600.

Possible reductions in the charge

»Ê¹ÚÌåÓýapp car benefit charge is nil if the conditions at EIM25555 are met. Where this is not the case, it is subject to proportionate reduction:

  • if the car is unavailable for part of the year; see EIM25565
  • if free fuel is withdrawn in a tax year and not reinstated; see EIM25570
  • if the car is shared; see EIM25575.

Years prior to 2003/04

»Ê¹ÚÌåÓýapp fuel benefit charge had a different basis in these years.