Legislation – Finance Act 2026

(i)

without any transfer of the property in it, or

(ii)

in circumstances falling within section 116A (car or van made available with transfer of ownership),”.

(3)

In section 116(1) (meaning of when car or van is available to employee)—

(a)

omit “and without any transfer of the property in it”;

(b)

after “household” insert “—

(a)

without any transfer of the property in it, or

(b)

in circumstances falling within section 116A.”

(4)

After section 116 insert—

“116ACar or van made available with transfer of ownership

(1)

A car or van is made available to an employee or a member of the employee’s family or household in circumstances falling within this section if the car or van is made available—

(a)

with a transfer of the property in it to the employee or member, and

(b)

pursuant to qualifying arrangements.

(2)

For the purposes of this section, arrangements are “qualifying arrangements” if any of the following applies in relation to them—

(a)

they include restrictions on the private use of the car or van by the employee or member;

(b)

they provide for a person other than the employee or member to be the registered keeper of the car or van;

(c)

they provide for the employee or member, after a certain period of time or in certain circumstances, to transfer the property in the car or van to another person for an amount determined in accordance with the arrangements;

(d)

they are of a description specified in regulations made by the Treasury.

(3)

For the purposes of this Chapter, a car or van made available as mentioned in subsection (1) is to be treated as being so made available until the arrangements cease to have effect (but see sections 132A, 143 and 156 for provision about the days on which a car or van is unavailable).

(4)

In subsection (2)(a) the reference to restrictions does not include a restriction that—

(a)

is included in a motor insurance policy held in respect of the car or van, and

(b)

might reasonably be expected to be so included.

(5)

In this section—

“arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;

“motor insurance policy” means a policy of insurance that complies with the requirements of Part 6 of the Road Traffic Act 1988 or, in relation to Northern Ireland, Part 8 of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1));

“registered keeper” means the person in whose name a vehicle is registered under VERA 1994.”

(5)

The amendments made by subsections (2) to (4) have effect for the tax year 2030-31 and subsequent tax years.

(6)

But in relation to a car or van made available to an employee or a member of the employee’s family or household pursuant to pre-6 April 2030 arrangements, the amendments made by subsections (2) to (4) have effect for the tax year 2032-33 and subsequent tax years.

(7)

If pre-6 April 2030 arrangements are varied or renewed on or after 6 April 2030, the car or van is treated, with effect from the beginning of the day on which the variation or renewal takes effect, as not being made available pursuant to pre-6 April 2030 arrangements.

(8)

In subsection (7) the reference to arrangements being varied does not include any variation which is required for reasons beyond the control of the parties to the arrangements.

(9)

In this section “pre-6 April 2030 arrangements” means arrangements which are entered into before 6 April 2030.