Section 239 — Income Tax (Earnings and Pensions) Act 2003: Payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .