Value Added Tax Act 1994 Schedule 6 paragraph C1

Interpretation

Paragraph C1 of Schedule 6 sets out how key terms relating to employer-provided cars and fuel are to be interpreted for the purposes of the car and fuel benefit VAT provisions.

• An individual's "own car" includes any car they currently have the use of, except a car that has been formally allocated to them through their employment for private use.
• A car is treated as allocated to an individual if it is made available (without transferring ownership) to them or another person, by reason of their employment and for private use — but pooled cars meeting certain conditions are excluded from this treatment.
• Fuel provided by an employer, including fuel for private use in an allocated car, is treated as provided to the employee by reason of their employment.
• Key definitions cover "employment" (which includes any office), "car" (a motor car as defined elsewhere in the Schedule), and "road fuel" (hydrocarbon oil on which duty has been or must be paid under the Hydrocarbon Oil Duties Act 1979), with the Treasury having power to amend the road fuel definition by order.