Finance Act 2001

58 Mileage allowances: nil liability notices

(1) This section applies if—

(a) mileage allowance payments are made to an employee or office-holder in respect of the use of a vehicle that is not a company vehicle, or

(b) mileage allowance relief is available in respect of the use by an employee or office-holder of a vehicle.

(2) A nil liability notice in force immediately before 6th April 2002 shall cease to have effect in relation to—

(a) payments made, or

(b) benefits, facilities, non-cash vouchers, credit-tokens or cash vouchers provided,

in respect of expenses incurred in connection with the use of the vehicle by the employee or office-holder for business travel.

(3) In subsection (2) “nil liability notice” means a notice under—

(a) section 144(1) of the Taxes Act 1988 (notice of nil liability in respect of non-cash vouchers, credit-tokens or cash vouchers), or

(b) section 166(1) of that Act (notice of nil liability in respect of payments, benefits or facilities).

(4) In this section—

• “business travel” has the meaning given by paragraph 2 of Schedule 12AA to the Taxes Act 1988;

• “company vehicle” has the meaning given by paragraph 6 of Schedule 12AA to that Act; and

• “mileage allowance payments” has the meaning given by section 197AD(2) of that Act.