EIM23605 - Car benefit: emergency vehicles exemption: conditions 4 to 5
Section 248A ITEPA 2003
From the tax year 2017 to 2018 the terms on which the emergency vehicle is made available must prohibit its private use otherwise than when the person is on-call or is travelling between 2 places that is for practical purposes regarded as ordinary commuting.
There is no charge to tax for the private use of an emergency vehicle where all the following conditions are met:
- on this page: either both parts of condition 4 or both parts of condition 5,
and
- on EIM23600, all of conditions 1, 2 and 3
Condition 4: person is “on call”
Part 1: meaning of on call:
- at the time they use the emergency vehicle, the person must be liable, as part of normal duties, to be called on to use it to respond to emergencies.
Part 2: permitted use while on call
- use is not limited to ordinary commuting etc, but such use as is permitted can only be reasonably local to the area in which the employee lives and works (they are unlikely to be in a position to meet Part 1 of this condition otherwise).
Condition 5: person is commuting
A person is commuting when they are using the emergency vehicle for ordinary commuting or for travel between 2 places that is substantially ordinary commuting.
Application to vans
This guidance applies equally to van benefit.
When the exemption under section 248A does not apply
Where the conditions of the exemption under section 248A ITEPA 2003 are not met a charge to tax will arise under section 203 ITEPA 2003 (see EIM23140).
However, transitional legislation introduced in Finance Act 2019 applies for the period 6 April 2017 to 5 April 2020 (see EIM23610).
From 6 April 2020, the normal rules apply under section 205 ITEPA 2003 (see EIM21885 and EIM23615).
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)