Income Tax (Earnings and Pensions) Act 2003 section 169

Car available to more than one member of family or household employed by same employer

Section 169 prevents a double tax charge where two members of the same family or household both work for the same employer and a company car is made available to one of them.

• Where an employee (E) and a family or household member (M) both work for the same employer, and M is provided with a company car, E would normally face a benefit-in-kind tax charge on that car.
• E will not be taxed on the car or any associated fuel benefit if M is already being taxed on the car benefit in their own right.
• E will also escape the charge if M holds lower-paid employment as a minister of religion.
• The provision ensures that the same car benefit is not taxed twice — once on the family member who actually receives it and again on the related employee.