Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 6Taxable benefits: cars, vans and related benefits

Car fuel: benefit treated as earnings

151Car fuel: nil cash equivalent

1

The cash equivalent of the benefit of the fuel is nil if condition A or B is met.

2

Condition A is met if in the tax year in question—

a

the employee is required to make good to the person providing the fuel the whole of the expense incurred by that person in connection with the provision of the fuel for the employee’s private use, and

b

the employee does make good that expense.

3

Condition B is met if in the tax year in question the fuel is made available only for business travel (see section 171(1)).