Part 4

Employment income: exemptions
Chapter 3

Exemptions: other transport, travel and subsistence

Payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles
239
1
No liability to income tax arises in respect of the discharge of any liability of an employee in connection with a taxable car or van or an exempt heavy goods vehicle.
2
No liability to income tax arises in respect of a payment to an employee in respect of expenses incurred by the employee in connection with a taxable car or van or an exempt heavy goods vehicle.
3
Subsections (1) and (2) do not apply to liability arising by virtue of section 120A (optional remuneration arrangements: benefit of a car), section 149 or 149A (benefit of car fuel treated as earnings) , section 154A (optional remuneration arrangements: benefit of a van) or section 160 or 160A (benefit of van fuel treated as earnings).
4
No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of a benefit connected with a taxable car or van or an exempt heavy goods vehicle.
5
Subsection (4) does not apply to the provision of a driver.
6
For the purposes of this section a car or van is “taxable” if under Chapter 6 of Part 3 an amount (whether the cash equivalent or the relevant amount) in respect of the benefit of it is to be treated as the employee’s earnings for the tax year.
7
For the purposes of this section—
a
“heavy goods vehicle” has the same meaning as in section 238(4) (modest private use of heavy goods vehicles), and
b
a heavy goods vehicle is “exempt” if it is made available in the tax year to the employee in such circumstances that section 238 applies.
8
For the purposes of subsections (1) and (2), a heavy goods vehicle is also “exempt” if it is so made available in such circumstances that section 238 would apply if the employee were not in lower-paid employment as a minister of religion (see section 290D).
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in s. 239(3) inserted (with effect in accordance with s. 7(7) of the amending Act) by Finance Act 2019 (c. 1), s. 7(6)(b)
S. 239(9) omitted (with effect in accordance with s. 13(4) of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 1 para. 14(3)
Words in s. 239(3) inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 53(2)(b)
Words in s. 239(3) inserted (21.7.2008) by Finance Act 2008 (c. 9), s. 48(1)
Words in s. 239(3) inserted (with effect in accordance with s. 7(7) of the amending Act) by Finance Act 2019 (c. 1), s. 7(6)(a)
Words in s. 239(6) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 53(3)
Words in s. 239(8) substituted (with effect in accordance with s. 13(4) of the amending Act) by Finance Act 2015 (c. 11), Sch. 1 para. 14(2)
Words in s. 239(3) inserted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 53(2)(a)
Pt. 4 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 26(3)