Section 290F | Extra amounts to be added in connection with a car ^F1

(1)The provisions of this section apply for the purposes of section 290E in the case of a tax year in which a car is made available as mentioned in section 114(1) (cars, vans and related benefits) by reason of the employment.

(2)Subsection (3) applies if in the tax year—

(a)an alternative to the benefit of the car is offered, and

(b)the amount that would be earnings within Chapter 1 of Part 3 if the benefit of the car were to be determined by reference to the alternative offered exceeds the benefit code earnings (see subsection (4)).

(3)The amount of the excess is an extra amount to be added under step 2 in section 290E(1).

(4)For the purposes of subsection (2) “the benefit code earnings” is the total for the year of—

(a)the cash equivalent of the benefit of the car (calculated in accordance with Chapter 6 of Part 3 (taxable benefits: cars, vans etc)), and

(b)the cash equivalent (calculated in accordance with that Chapter) of the benefit of any fuel provided for the car by reason of the employment.

(5)Section 290C(2) (provisions of benefits code not applicable to lower-paid ministers of religion) is to be disregarded for the purpose of determining any amount under this section.