This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Is it really unavailable?

Shared from Tax Insider: Is it really unavailable?
By Mark McLaughlin, August 2023

Mark McLaughlin points out that determining whether a company car is unavailable for private use is perhaps not as straightforward as it should be. 

The income tax charge for an employee on the benefit-in-kind of a car provided by the employer (referred to here as a ‘company’ car for convenience) can be potentially expensive. The benefit-in-kind calculation is beyond the scope of this article but is broadly based on the car’s list price and carbon dioxide emissions. 

What does ‘available’ mean? 

The car benefit legislation applies if the car is made available to an employee (or member of the employee’s family or household), is made available by reason of the employment, and is available for the employee’s (or member’s) private use (ITEPA 2003, s 114(1)). 

Note that a key condition for a company car benefit-in-kind charge

This is one of our 2583 Premium articles

To see this article in full and unlock access to our complete library of 2583 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee