The Van Benefit and Car and Van Fuel Benefit Order 2020

JurisdictionUK Non-devolved
CitationSI 2020/199

2020 No. 199

Income Tax

The Van Benefit and Car and Van Fuel Benefit Order 2020

Made 27th February 2020

Laid before the House of Commons 2nd March 2020

Coming into force 6th April 2020

The Treasury make the following Order in exercise of the powers conferred by section 170(1A)(b) and (c), (2), (5) and (6) of the Income Tax (Earnings and Pensions) Act 20031:

S-1 Citation, commencement and application

Citation, commencement and application

1.—(1) This Order may be cited as the Van Benefit and Car and Van Fuel Benefit Order 2020.

(2) This Order comes into force on 6th April 2020 and applies to the tax year 2020-21 and subsequent tax years.

S-2 Amendment to section 150 of the Income Tax (Earnings and Pensions) Act 2003

Amendment to section 150 of the Income Tax (Earnings and Pensions) Act 2003

2. In section 150(1) of the Income Tax (Earnings and Pensions) Act 2003 (car fuel: calculating the cash equivalent)2for “£24,100” substitute “£24,500”.

S-3 Amendment to section 155 of the Income Tax (Earnings and Pensions) Act 2003

Amendment to section 155 of the Income Tax (Earnings and Pensions) Act 2003

3. In section 155(1B)(a) and (b) of the Income Tax (Earnings and Pensions) Act 2003 (cash equivalent of the benefit of a van)3for “£3,430” substitute “£3,490”.

S-4 Amendment to section 161 of the Income Tax (Earnings and Pensions) Act 2003

Amendment to section 161 of the Income Tax (Earnings and Pensions) Act 2003

4. In section 161(b) of the Income Tax (Earnings and Pensions) Act 2003 (van fuel: the cash equivalent)4for “£655” substitute “£666”.

Iain Stewart

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

27th February 2020

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends sections 150(1), 155(1B) and 161(b) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1)(“the Act”).

Where an employee receives fuel for a car or van as a result of their employment and they are chargeable to tax in respect of that vehicle under section 120 or 154 of the Act, the cash equivalent of the benefit of that fuel is treated as earnings under sections 149 and 160 of the Act.

The cash equivalent of the benefit of fuel for a car is normally calculated by applying the “appropriate percentage” (usually calculated by reference to the CO2emissions of the car) to the figure in section 150(1) of the Act. Article 2 of this Order increases this figure to £24,500 for the tax year 2020-21 and subsequent tax years...

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