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E4.620 Cars—main rules

A tax charge arises where¹:

1. Ìý

   •ÌýÌýÌýÌý a car is made available for the private use of an employee or to members of their family or household

2. Ìý

   •ÌýÌýÌýÌý the car is made available by reason of the employment, and

3. Ìý

   •ÌýÌýÌýÌý there is no transfer of the property in the car

It was a further condition for 2015/16 and earlier years that the employee was not in lower-paid employment (see E4.601C).

In (a), family or household means the spouse, children and their spouses, parents, dependants, domestic staff and guests of the employee². See Golding v HMRC³ for a case where a Ferrari used for marketing by providing prospective clients with track days was found not to have been 'made available' to the principal director of an antiques business; HMRC did not appeal this decision but took the view that it 'does not set any precedent of any kind'.

If the above conditions are met, the benefit rules apply even if the car is provided on arm's