Part 3Employment income: earnings and benefits etc. treated as earnings
C2C1Chapter 6Taxable benefits: cars, vans and related benefits
Pt. 3 Ch. 6 modified (6.4.2021 for the tax year 2021-22) by Finance Act 2020 (c. 14), s. 10
Cars: reduction where shared car
148Reduction of cash equivalent where car is shared
1
This section applies F7for the purposes of sections 121 and 121B if in a tax year a car—
a
is available to more than one employee concurrently,
b
is so made available by the same employer, and
c
is available concurrently for each employee’s private use,
and two or more of those employees are chargeable to tax in respect of the car in that year by virtue of F3sections 120 and 120A .
F42
The amount to be treated as earnings in respect of the benefit of the car is to be calculated separately for each of those employees for that tax year (whether under section 120 or section 120A).
F52A
F1In the case of an employee chargeable to tax in respect of the car by virtue of section 120 The provisional sum calculated under step 7 in section 121(1) is to be reduced on a just and reasonable basis before making any deduction under step 8.
F22B
In the case of an employee chargeable to tax in respect of the car by virtue of section 120A, the modified cash equivalent (as determined under section 121B(1)) is to be reduced on a just and reasonable basis.
F63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
In this section the reference to the car being available for each employee’s private use includes a reference to the car being available for the private use of a member of the employee’s family or household.
Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9