Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 6

Taxable benefits: cars, vans and related benefits

Car fuel: benefit treated as earnings

Benefit of car fuel treated as earnings: optional remuneration arrangements
149A
1
This section applies if—
a
fuel is provided for a car in a tax year by reason of an employee's employment,
b
the employee is chargeable to tax in respect of the car in the tax year by virtue of section 120 or 120A, and
c
the fuel is provided pursuant to optional remuneration arrangements.
2
If the condition in subsection (3) is met—
a
the amount foregone with respect to the benefit of the fuel (see section 69B) is to be treated as earnings from the employment for the tax year, and
b
section 149(1) does not apply.
3
The condition mentioned in subsection (2) is that the amount foregone with respect to the benefit of the fuel is greater than the cash equivalent of the benefit of the fuel.
4
For the purposes of subsection (3), assume that the cash equivalent of the benefit of the fuel is zero if the condition in subsection (5) is met.
5
The condition mentioned in subsection (4) is that the benefit of the fuel would be exempt from income tax but for section 228A (exclusion of certain exemptions).
6
References in this section to fuel do not include any facility or means for supplying electrical energy or any energy for a car which cannot in any circumstances emit CO
2
by being driven.
7
Where it is necessary for the purposes of subsections (2)(a) and (3) to apportion an amount of earnings to the benefit of the fuel in the tax year, the apportionment is to be made on a just and reasonable basis.
In this subsection “earnings” is to be interpreted in accordance with section 69B(5).
Pt. 3 Ch. 6 modified (6.4.2021 for the tax year 2021-22) by Finance Act 2020 (c. 14), s. 10
Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9
S. 149A inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 35