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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Car fuel: benefit treated as earnings

  • Section 149 Benefit of car fuel treated as earnings
  • Section 149A Benefit of car fuel treated as earnings: optional remuneration arrangements
  • Section 150 Car fuel: calculating the cash equivalent
  • Section 151 Car fuel: nil cash equivalent
  • Section 152 Car fuel: proportionate reduction of cash equivalent
  • Section 153 Car fuel: reduction of cash equivalent
  1. Car fuel: benefit treated as earnings
  2. Benefit of car fuel treated as earnings

Section 149 | Benefit of car fuel treated as earnings

From legislation.gov.uk

(1)If in a tax year—

(a)fuel is provided for a car by reason of an employee’s employment, and

(b)that person is chargeable to tax in respect of the car by virtue of section 120 or 120A,F1

the cash equivalent of the benefit of the fuel is to be treated as earnings from the employment for that year.

(2)The cash equivalent of the benefit of the fuel is calculated in accordance with sections 150 to 153.

(3)Fuel is to be treated as provided for a car, in addition to any other way in which it may be provided, if—

(a)any liability in respect of the provision of fuel for the car is discharged,

(b)a non-cash voucher or a credit-token is used to obtain fuel for the car,

(c)a non-cash voucher or a credit-token is used to obtain money which is spent on fuel for the car, or

(d)any sum is paid in respect of expenses incurred in providing fuel for the car.

(4)References in this section to fuel do not include any facility or means for supplying electrical energy or any energy for a car which cannot in any circumstances emit CO2 by being driven.F2

Notes

  1. F1

    Words in s. 149(1)(b) inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 34

  2. F2

    Words in s. 149(4) substituted (with effect for the tax year 2010-11 and subsequent tax years in accordance with s. 58(18) of the amending Act) by Finance Act 2010 (c. 13), s. 58(11)

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