Part 4Employment income: exemptions
Chapter 3Exemptions: other transport, travel and subsistence
247Provision of cars for disabled employees
1
This section applies where a car is made available to a disabled employee without any transfer of the property in it.
2
No liability to income tax arises by virtue of Chapter 6 or 10 of Part 3 (taxable benefits: cars, vans etc. and residual liability to charge) in respect of the benefit if conditions A to C are met.
3
No liability to income tax arises in respect of—
a
the provision of fuel for the car, or
b
the payment or reimbursement of expenses incurred in connection with it,
if conditions A to C are met.
4
Condition A is that the car has been adapted for the employee’s special needs or, in the case of an employee who because of disability can only drive a car that has automatic transmission, it is such a car.
5
Condition B is that the car is made available on terms prohibiting its use otherwise than for—
a
the employee’s business travel, or
b
transport for the employee for the purpose of—
i
ordinary commuting or travel between any two places that is for practical purposes substantially ordinary commuting, or
ii
travel to a place the expenses of travelling to which would be within one of the training exemption provisions if the employer paid them.
6
Condition C is that in the tax year the car is only used in accordance with those terms.
7
In this section—
“business travel” has the same meaning as in Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits) (see section 171(1)),
“disabled employee” has the same meaning as in section 246 (see subsection (4)), and
“the training exemption provisions” means—
section 250 (exemption of work-related training provision),
section 255 (exemption for contributions to individual learning account training), and
section 311 (retraining courses).
8
Section 138(4) (when a car has automatic transmission) applies for the purposes of this section as it applies for the purposes of section 138.