Part 4

Employment income: exemptions
Chapter 2

Exemptions: mileage allowances and passenger payments

Mileage allowances

The approved amount for mileage allowance payments
230
1
The approved amount for mileage allowance payments that is applicable to a kind of vehicle is—
M × R
where—
M is the number of miles of business travel by the employee (other than as a passenger) using that kind of vehicle in the tax year in question;
R is the rate applicable to that kind of vehicle.
2
The rates applicable are as follows—

Table
Kind of vehicle | Rate per mile
Car or van | 45p for the first 10,000 miles
| 25p after that
Motor cycle | 24p
Cycle | 20p
3
The reference in subsection (2) to “the first 10,000 miles” is to the total number of miles of business travel in relation to the employment, or any associated employment, by car or van in the tax year in question.
4
One employment is associated with another if—
a
the employer is the same;
b
the employers are partnerships or bodies and an individual or another partnership or body has control over both of them; or
c
the employers are associated companies within the meaning given by section 449 of CTA 2010.
5
In subsection (4)(b)—
a
“control”, in relation to a body corporate or partnership, has the meaning given by section 995 of ITA 2007 (in accordance with section 719 of this Act), and
b
the definition of “control” in that section of that Act applies (with the necessary modifications) in relation to an unincorporated association as it applies in relation to a body corporate.
6
The Treasury may by regulations amend subsection (2) so as to alter the rates or rate bands.
Words in s. 230(4)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 384 (with Sch. 2)
Sum in s. 230(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Approved Mileage Allowance Payments (Rates) Regulations 2011 (S.I. 2011/896), regs. 1(2), 2
Words in s. 230(5)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 433 (with Sch. 2)
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)