Car Fuel Benefits Order 2008 comes into force

Implementation date: 19 March 2008

The Order amends s.150(1) of the Income Tax (Earnings and Pensions) Act 2003.

Where an employee receives fuel for a car by reason of his or her employment, the cash equivalent of the benefit of the fuel is treated as earnings from employment under s.149 and is subject to tax and national insurance contributions. The cash equivalent of the benefit is calculated by applying the 'appropriate percentage' (calculated by reference to the CO2 emissions of a car) to the figure of £14,400 in s.150(1) of the Act. Article 2 of this Order increases the figure in s.150(1) of the Act to £16,900. The Order can be viewed on the OPSI website.