Section 117 — Income Tax (Earnings and Pensions) Act 2003: Meaning of car or van made available by reason of employment

Meaning of car or van made available by reason of employment 117 1 For the purposes of this Chapter a car or van made available by an employer to an employee or member of an employee's family or household is to be regarded as made available by reason of the employment unless subsection (2) , (3) or (4) excludes the application of this subsection.

2 Subsection (1) does not apply where—

a the employer is an individual, and b the car or van in question is made available in the normal course of the employer's domestic, family or personal relationships.

3 Subsection (1) does not apply where—

a the employer carries on a vehicle hire business under which cars or vans of the same kind are made available to members of the public for hire, b the car or van in question is hired to the employee or member in the normal course of that business, and c in hiring that car or van the employee or member is acting as an ordinary member of the public.

4 Subsection (1) does not apply where—

a the employer carries on a business under which cars or vans of the same kind are made available to members of the public for sale or lease, b the car or van in question is sold or leased to the employee or member in the normal course of that business, and c the terms on which the car or van is sold or leased to the employee or member might reasonably be expected to be agreed between the employer and a member of the public with whom the employer deals at arm’s length.