Sarah Bradford looks at how cars provided under an employee car ownership plan are currently taxed and outlines plans to bring them within the scope of company car tax rules.
A tax charge arises under the company car rules where a car is made available to an employee or a member of their family or household (without a transfer of ownership) by reason of the employee’s employment and is available for the private use of the employee or the member of their family or household.
Thus, for the tax charge to arise, all three of the following conditions must be met:
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There is no transfer of ownership.
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The car is provided by reason of the employee’s employment.
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The car is available for the private use of the employee or the member of the employee’s family or household to whom it is provided. <>
