Income Tax (Earnings and Pensions) Act 2003 section 238

Modest private use of heavy goods vehicles

Section 238 provides an exemption from income tax where an employee has modest private use of a heavy goods vehicle provided by their employer.

• No income tax arises when an employer makes a heavy goods vehicle available for an employee's private use, provided two conditions are met.
• The employee must not become the owner of the vehicle (Condition A), and the employee's use of the vehicle must not be wholly or mainly private (Condition B).
• A heavy goods vehicle is defined as a mechanically propelled road vehicle primarily suited for carrying goods, with a designed maximum laden weight exceeding 3,500 kilograms.
• Private use means any use other than travel the employee is necessarily obliged to undertake in performing their employment duties.