Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 150: Car fuel: calculating the cash equivalent
582.This section defines the cash equivalent of the benefit of the provision of car fuel. The section derives from section 158(2) of ICTA.
583.Subsection (1) gives the basis of calculation, which is to take the “appropriate percentage” of £14,400.
584.Subsection (2) states the meaning of “appropriate percentage” in this section. That is the same percentage as is used to calculate the cash equivalent of the car for which the fuel is provided.
585.Subsection (3) gives signposts to three sections that modify the cash equivalent in particular circumstances.