Income Tax (Earnings and Pensions) Act 2003 section 269

Exemption where benefits or money obtained in connection with taxable car or van or exempt heavy goods vehicle

Section 269 provides an exemption from the vouchers and credit-tokens tax charge where the voucher or token is used for goods, services, or money connected with a taxable company car or van, or an exempt heavy goods vehicle.

• Non-cash vouchers or credit-tokens used by an employee (or family member) for goods, services, or money relating to a taxable car or van, or an exempt heavy goods vehicle, are exempt from the vouchers and credit-tokens income tax charge.
• Where the goods obtained are fuel for a car or van, the exemption still applies, but the fuel is instead treated as provided for the purposes of the separate car fuel benefit charge or van fuel benefit charge, so it is taxed under those rules instead.
• A car or van is "taxable" if a benefit-in-kind charge arises on it for the tax year in which the voucher or token is used; a heavy goods vehicle is "exempt" if it qualifies for the modest private use exemption — including where the employee is a lower-paid minister of religion.
• The definitions of "car", "van", and "heavy goods vehicle" follow those used elsewhere in the employment income legislation for benefit-in-kind purposes.