Income Tax (Earnings and Pensions) Act 2003 section 167

Pooled cars

Section 167 sets out the conditions under which a car qualifies as a "pooled car" and the tax consequences that follow, effectively exempting such cars from the car benefit and residual benefit-in-kind charges.

• A pooled car is exempt from the car benefit charge and is not treated as an employment-related benefit for income tax purposes.
• To qualify, the car must have been made available to and actually used by more than one employee during the tax year, with no single employee having ordinary exclusive use.
• Any private use by an employee must be merely incidental to their business use of the car in that year.
• The car must not normally be kept overnight at or near the home of any of the employees, unless it is kept on premises occupied by the employer.