Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Overview
414.Employees may be taxable on the benefit of the availability for private use of a car or van, or car fuel that their employers provide. If so, the cash equivalent of the benefit is taxed as the employee’s earnings.
415.This Chapter contains the rules to calculate the cash equivalent of that benefit.
416.Sections 114 to 119 set out the basic principles of the car, car fuel and van benefit rules.
417.Sections 120 and 121 provide for the cash equivalent of the car benefit to be taxed as earnings and the method for calculating that cash equivalent.
418.Sections 122 to 148 give detailed rules in support of the calculation of the cash equivalent of the car benefit.
419.Sections 149 to 153 deal likewise with car fuel benefits.
420.Sections 154 to 166 deal likewise with van benefits.
421.Sections 167 and 168 give special rules that apply to pool vehicles.
422.Section 169 deals with situations where the same employer employs more than one member of a family or household.
423.Section 170 provides for the Treasury to make orders relating to provisions in this Chapter.
424.Sections 171 and 172 give definitions.