Section 18 | Car or van made available on arm’s length terms

(1)In section 117 of ITEPA 2003 (meaning of car or van made available by reason of employment)—

(a)in subsection (1), for “or (3)” substitute “, (3) or (4)”;

(b)after subsection (3) insert—

(4)Subsection (1) does not apply where—

(a)the employer carries on a business under which cars or vans of the same kind are made available to members of the public for sale or lease,

(b)the car or van in question is sold or leased to the employee or member in the normal course of that business, and

(c)the terms on which the car or van is sold or leased to the employee or member might reasonably be expected to be agreed between the employer and a member of the public with whom the employer deals at arm’s length.

(2)The amendments made by subsection (1) have effect for the tax year 2026-27 and subsequent tax years.