Income and Corporation Taxes Act 1988

158 Car fuel. U.K.

(1) M1 Where in any year in the case of a person employed in [F2 employment to which this Chapter applies] fuel is provided by reason of his employment for a car [F3 the benefit of which is chargeable to tax under section 157 as his income,] an amount equal to whatever is the cash equivalent of that benefit in that year shall be treated as emoluments of the employment and, accordingly, shall be chargeable to income tax under Schedule E.

[F4 (2) Subject to the following provisions of this section, the cash equivalent of that benefit is the appropriate percentage of £14,400.

The “appropriate percentage” means the appropriate percentage determined under Schedule 6 for the purpose of calculating the cash equivalent of the benefit of the car for which the fuel is provided.]

(3) M2 Without prejudice to the generality of subsection (1) above, fuel is provided for a car if—

(a) any liability in respect of the provision of fuel for the car is discharged;

(b) a non-cash voucher or a credit-token is used to obtain fuel for the car or money which is spent on such fuel;

(c) any sum is paid in respect of expenses incurred in providing fuel for the car.

• In this subsection “non-cash voucher” and “credit-token” have the meanings given by section 141(7) and 142(4) respectively.

(4) The Treasury may by order taking effect from the beginning of any year beginning after it is made substitute [F5 a different amount for that specified in subsection (2) above].

[F6 (5) The cash equivalent of the benefit in any year is proportionately reduced (see subsection (8) below) if the car for which the fuel is provided is unavailable (within the meaning of Schedule 6) for any part of the year.]

(6) F7 . . . If in the relevant year—

(a) the employee is required to make good to the person providing the fuel the whole of the expense incurred by him in or in connection with the provision of fuel for his private use and he does so; or

(b) the fuel is made available only for business travel;

the cash equivalent is nil.

[F8 (6A) The cash equivalent of the benefit in any year is proportionately reduced (see subsection (8) below) if for any part of that year—

(a) the facility for the provision of fuel as mentioned in subsection (1) above is not available, or

(b) the employee is required to make good to the person providing the fuel the whole of the expense incurred by him in connection with the provision of the fuel for his private use and he does so, or

(c) the fuel is made available only for business travel.

(6B) The fact that any of the conditions specified in subsection (6A) above is met for part of a year shall be disregarded if there is a time later in that year when any of those conditions is not met.]

(7) F9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10 (8) Where the cash equivalent falls to be proportionately reduced under subsection (5) or (6A) above (or under both those subsections), the reduced amount is given by:

where—

CE is the amount of the cash equivalent before any reduction; and

D is the total number of days in the year on which either the car is unavailable or one or more of the conditions in subsection (6A) above is met.]

[F11 (9) References in this section to fuel do not include any facility or means for supplying electrical energy for an electrically propelled vehicle.]

Textual Amendments

F2 1989 s.53(2)(b). Previously "director's or higher-paid employment".

F3 Words in s. 158(1) substituted (with effect in accordance with s. 43(4) of the amending Act) by Finance Act 1995 (c. 4), s. 43(2)

F4 S. 158(2) substituted for s. 158(2)-(2B) (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(2)

F5 Words in s. 158(4) substituted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(3)

F6 S. 158(5) substituted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(4)

F7 Words in s. 158(6) repealed (with effect in accordance with Sch. 27 Pt. 3(10) Note of the repealing Act) by Finance Act 1998 (c. 36), s. 165, Sch. 27 Pt. 3(10)

F8 S. 158(6A)(6B) inserted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(5)

F9 S. 158(7) repealed (with effect in accordance with Sch. 27 Pt. 3(10) Note of the repealing Act) by Finance Act 1998 (c. 36), s. 165, Sch. 27 Pt. 3(10)

F10 S. 158(8) inserted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(6)

F11 S. 158(9) inserted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2002 (c. 23), s. 34(7)

Modifications etc. (not altering text)

C1 See—1988 ss.197A, 197B—car parking and mileage profit.1988 s.327—disabled persons' vehicle maintenance grant.

C2 S. 158 applied (E.W.S.) (25.7.1991 for tax year beginning 6.4.1991 and subsequent years) by Social Security Act 1975 (c. 14, SIF 113:1), s. 4A(4)-(6) (as inserted by Social Security Act 1991 (c. 42, SIF 113:1), ss. 1(5), 6(5))

C3 applied (N.I.) (16.10.1991 for tax year beginning 6.4.1991 and subsequent years) by Social Security (Northern Ireland) Act 1975 (c. 15, SIF 113:1), s. 4A(4)-(6) (as inserted by S.I. 1991/2294 (N.I. 22), arts. 1(4), 3(5))

S. 158 applied (E.W.S.) (1.7.1992) by Social Security Contributions and Benefits Act 1992 (c. 4), ss. 10(4), 177(4) (with s. 108(5)).

Marginal Citations

M1 Source—1976 s.64A(1); 1981 s.69(1); 1982 s.46(4)

M2 Source—1976 s.64A(3)-(6); 1981 s.69(1)