Income Tax (Earnings and Pensions) Act 2003 section 160

Benefit of van fuel treated as earnings

Section 160 sets out when and how fuel provided for a company van gives rise to a taxable benefit in kind, treated as employment earnings.

• Where fuel is provided for a van by reason of employment, the employee is taxable on the van itself, and the van's cash equivalent is determined under the standard rules, the cash equivalent of the fuel benefit is treated as taxable earnings
• The cash equivalent of the van fuel benefit is calculated using the rules in sections 161 to 164
• Fuel counts as "provided" in a broad sense — including where a fuel liability is discharged, vouchers or credit-tokens are used to obtain fuel or money spent on fuel, or expenses for fuel provision are reimbursed
• Where the van fuel is provided under an optional remuneration arrangement, separate rules under section 160A apply instead