Section 290F — Income Tax (Earnings and Pensions) Act 2003: Extra amounts to be added in connection with a car

Extra amounts to be added in connection with a car 290F 1 The provisions of this section apply for the purposes of section 290E in the case of a tax year in which a car is made available as mentioned in section 114(1) (cars, vans and related benefits) by reason of the employment.

2 Subsection (3) applies if in the tax year—

a an alternative to the benefit of the car is offered, and b the amount that would be earnings within Chapter 1 of Part 3 if the benefit of the car were to be determined by reference to the alternative offered exceeds the benefit code earnings (see subsection (4)).

3 The amount of the excess is an extra amount to be added under step 2 in section 290E(1).

4 For the purposes of subsection (2) “the benefit code earnings” is the total for the year of—

a the cash equivalent of the benefit of the car (calculated in accordance with Chapter 6 of Part 3 (taxable benefits: cars, vans etc )),

and b the cash equivalent (calculated in accordance with that Chapter) of the benefit of any fuel provided for the car by reason of the employment.

5 Section 290C(2) (provisions of benefits code not applicable to lower-paid ministers of religion) is to be disregarded for the purpose of determining any amount under this section.