Part 4Employment income: exemptions
Chapter 3Exemptions: other transport, travel and subsistence
239Payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles
1
No liability to income tax arises in respect of the discharge of any liability of an employee in connection with a taxable car or van or an exempt heavy goods vehicle.
2
No liability to income tax arises in respect of a payment to an employee in respect of expenses incurred by the employee in connection with a taxable car or van or an exempt heavy goods vehicle.
3
Subsections (1) and (2) do not apply to liability arising by virtue of section 149 (benefit of car fuel treated as earnings).
4
No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of a benefit connected with a taxable car or van or an exempt heavy goods vehicle.
5
Subsection (4) does not apply to the provision of a driver.
6
For the purposes of this section a car or van is “taxable” if under Chapter 6 of Part 3 the cash equivalent of the benefit of it is to be treated as the employee’s earnings for the tax year.
7
For the purposes of this section—
a
“heavy goods vehicle” has the same meaning as in section 238(4) (modest private use of heavy goods vehicles), and
b
a heavy goods vehicle is “exempt” if it is made available in the tax year to the employee in such circumstances that section 238 applies.
8
For the purposes of subsections (1) and (2), a heavy goods vehicle is also “exempt” if it is so made available in such circumstances that section 238 would apply if the employee were not in excluded employment.
9
In this Part “excluded employment” means an excluded employment within the meaning of the benefits code (see section 63(4)).