Tax and Duty Manual Part 05-04-02 has been updated to provide additional guidance regarding:
- the tax treatment of company cars (and related running costs) for benefit-in-kind purposes
- the exemption from benefit-in-kind for electric cars introduced by Finance Act 2017.
-Finance Act 2017 introduced an exemption from benefit-in-kind provisions in relation to electric cars. An electric car is one that derives its motive power exclusively from an electric motor. If an electric car is made available for an employee’s private use, no taxable benefit will arise in respect of that private use.
Material from Tax and Duty Manual Part 05-04-03 – Benefit-in-Kind on use of Company Cars by Employees in the Motor Industry, has also been incorporated into this manual.