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: unavailability or payments for private use
143Deduction for periods when car unavailable
F1A1
This section has effect for the purposes of—
a
section 121(1) (method of calculating the cash equivalent of the benefit of a car), and
b
section 121B(1) (optional remuneration arrangements: meaning of “modified cash equivalent”).
1
A deduction is to be made from the amount carried forward from step 6 of section 121(1) F3or (as the case may be) step 4 of section 121B(1) if the car has been unavailable on any day during the tax year in question.
2
For the purposes of this section a car is unavailable on any day if the day—
a
falls before the first day on which the car is available to the employee,
b
falls after the last day on which the car is available to the employee, or
c
falls within a period of 30 days or more throughout which the car is not available to the employee.
3
The amount of the deduction is given by the formula—
where—
U is the number of days in the year on which the car is unavailable,
Y is the number of days in that year, and
A is the amount carried forward from step 6 F2of section 121(1) or (as the case may be) step 4 of section 121B(1) .
4
This section is subject to section 145 (modification where car temporarily replaced).
Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9