Income Tax (Earnings and Pensions) Act 2003 section 172

Minor definitions: equipment to enable a disabled person to use a car

Section 172 defines what counts as equipment to enable a disabled person to use a car, and related terms, for the purposes of the car benefit rules.

• Equipment qualifies if it is designed solely for use by a chronically sick or disabled person, or if it is provided with the car specifically to enable a disabled employee to use the car despite their disability.
• A disabled employee is one who holds a disabled person's badge at the time the car is first made available to them.
• The relevant disability is the specific disability that entitles the employee to hold the disabled person's badge.
• These definitions are important because qualifying disability equipment is excluded from being treated as a car accessory, which means it does not increase the taxable car benefit charge.