Income Tax (Earnings and Pensions) Act 2003 section 150

Car fuel: calculating the cash equivalent

Section 150 explains how to calculate the taxable cash equivalent of the benefit when an employer provides fuel for a company car.

• The cash equivalent of employer-provided car fuel is calculated by applying the car's "appropriate percentage" to a fixed figure of £21,100
• The "appropriate percentage" is the same percentage used to work out the car benefit itself, as determined under sections 133 to 142
• The cash equivalent may be reduced to nil if certain conditions in section 151 are met, or proportionately reduced under section 152
• A further reduction may apply under section 153 in specific circumstances