Introduction Details of the Section
2.Subsection (2) provides for a consequential amendment of section 116(3) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
3.Subsection (3) provides for a consequential amendment of section 121(1) of ITEPA.
4.Subsection (5) inserts a new section 124A after section 124. The new provision concerns the computation of the benefit charge based on an equivalent manual car where an automatic car is provided for a disabled employee. In particular, section 124A(3) sets out how the equivalent manual car is to be identified, and section 124A(4) defines an automatic car.
5.New section 124A(5) clarifies when, for the purposes of this section, a car is available to an employee. It confirms that the car needs to be made available to the employee by reason of the employee’s employment but without the car being transferred to the employee.