121 Benefit of use of car.

[FA82 s4(2) to (6) and (9)(a) and (b)(i), (ii) and (iv); FA92 s8(a),(b)(i) and (ii)(V) and Sch1 PtV; FA96 s6]

(1) (a) In this section—

“business mileage for a year of assessment”, in relation to a person, means the total number of ^[15]>whole miles^<[15][15]>whole kilometres^<[15] travelled in the year in the course of business use by that person of a car or cars in respect of which this section applies in relation to that person;

“business use”, in relation to a car in respect of which this section applies in relation to a person, means travelling in the car which that person is necessarily obliged to do in the performance of the duties of his or her employment;

^[7]>

“car” means any mechanically propelled road vehicle constructed or adapted for the carriage of passengers, other than a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used;

^<[7]

^[7]>

“car” means any mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more other persons other than—

(a) a motor-cycle,

(b) a van (within the meaning of section 121A), or

(c) a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used;

^<[7]

^[33]>

“electric vehicle” means a vehicle that derives its motive power exclusively from an electric motor;

^<[33]

“employment” means an office or employment of profit such that any emoluments (within the meaning of section 113) of the office or employment would be charged to tax, and cognate expressions shall be construed accordingly;

^[8]>

“motor-cycle” means a mechanically propelled vehicle with less than four wheels and the weight of which unladen does not exceed 410 kilograms;

^<[8]

“private use”, in relation to a car, means use of the car other than business use;

“relevant log book”, in relation to a person and a year of assessment, means a record maintained on a daily basis of the person’s business use for the year of assessment of a car or cars in respect of which this section applies in relation to that person for that year of assessment which—

(i) contains relevant details of distances travelled, nature and location of business transacted and amount of time spent away from the employer’s place of business, and

(ii) is certified by the employer as being to the best of the employer’s knowledge and belief true and accurate.

(b) For the purposes of this section—

(i) (I) a car made available in any year to an employee by reason of his or her employment shall be deemed to be available in that year for his or her private use unless the terms on which the car is so made available prohibit such use and no such use is made of the car in that year;

(II) a car made available to an employee by his or her employer or by a person connected with the employer shall be deemed to be made available to him or her by reason of his or her employment (unless the employer is an individual and it can be shown that the car was made so available in the normal course of his or her domestic, family or personal relationships);

(III) a car shall be treated as available to a person and for his or her private use ^[28]>if it is available to a member or members of his or her family or household^<[28][28]>if it is available to—^<[28]

^[28]>

(A) a member or members of his or her family or household,

(B) his or her civil partner,

(C) a member or members of the family or household of his or her civil partner,

(D) any spouse or civil partner of a child of the person, or

(E) any spouse or civil partner of a child of the civil partner of the person;

^<[28]

(IV) references to a person’s family or household are references to the person’s spouse, sons and daughters and their spouses, parents and servants, dependants and guests;

(ii) in relation to a car in respect of which this section applies, expenditure in respect of any costs borne by a person connected with the employer shall be treated as borne by the employer;

(iii) the original market value of a car shall be the price (including any duty of customs, duty of excise or value-added tax chargeable on the car) which the car might reasonably have been expected to fetch if sold in the State singly in a retail sale in the open market immediately before the date of its first registration in the State under section 6 of the Roads Act, 1920, or under corresponding earlier legislation, or elsewhere under the corresponding legislation of any country or territory.

(2) (a) In relation to a person chargeable to tax in respect of an employment, this section shall apply for a year of assessment in relation to a car which, by reason of the employment, is made available (without a transfer of the property in it) to the person and is available for his or her private use in that year.

(b) In relation to a car in respect of which this section applies for a year of assessment—

(i) Chapter 3 of this Part shall not apply for that year in relation to the expense incurred in connection with the provision of the car, ^[34]>and^<[34]

^[9]>

(ii) there shall be treated for that year as emoluments of the employment by reason of which the car is made available, and accordingly chargeable to income tax, the amount, if any, by which the cash equivalent of the benefit of the car for the year exceeds the aggregate for the year of the amounts which the employee is required to make good and actually makes good to the employer in respect of any part of the costs of providing or running the car; but any part of such aggregate in respect of which the cash equivalent is reduced under subsection (3)(a) shall be disregarded for the purposes of this subparagraph.

^<[9]

^[9]>

(ii) there shall be treated for that year as emoluments of the employment by reason of which the car is made available, and accordingly chargeable to income tax, the amount, if any, by which the cash equivalent of the benefit of the car for the year exceeds the aggregate for the year of the amount which the employee is required to make good and actually makes good to the employer in respect of any part of the costs of providing or ^[37]>running the ^[35]>car.^<[35][35]>car, and^{<[35]<[37][37]>}running the car,^<[37]

^<[9]

^[36]>

(iii) notwithstanding subparagraph (ii), no amount shall be treated as emoluments of the employment where the car provided is—

(I) an electric vehicle, and

(II) provided during the period 1 January 2018 to ^[38]>31 December 2018.^<[38][38]>31 December 2018,^<[38]

^<[36]

^[39]>

(iv) notwithstanding subparagraph (ii), where a car made available during the period 1 January 2019 to 31 December ^[40]>2021^<[40][40]>2022^<[40] is an electric vehicle and the original market value of the car does not exceed €50,000, no amount shall be treated as emoluments of the employment,

(v) notwithstanding subparagraph (ii), where—

(I) a car made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,

(II) the original market value of the car exceeds €50,000, and

(III) the car was first made available to the employee during the period 10 October 2017 to 9 October 2018,

no amount shall be treated as emoluments of the employment, and

(vi) where a car made available during the period 1 January 2019 to 31 December ^[41]>2021^<[41][41]>2022^<[41] is an electric vehicle and the original market value of the car exceeds €50,000, the cash equivalent of the benefit of the car ascertained under subsection (3)(a) or (4)(a), as the case may be, shall be computed on the original market value of the car reduced by €50,000.

^<[39]

(3) ^[10]>(a) The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent of the original market value of the car, but shall be reduced—^<[10]

^[10]>

(i) where no part of the cost for that year of the fuel used in the course of the private use of the car by the employee is borne directly or indirectly by the employer, by 4.5 per cent of the original market value of the car,

(ii) where no part of the cost for that year of the insurance of the car is borne directly or indirectly by the employer, by 3 per cent of the original market value of the car,

(iii) where no part of the cost for that year of repair and servicing of the car is borne directly or indirectly by the employer, by 3 per cent of the original market value of the car, and

(iv) where no part of the excise duty for that year on the licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952, relating to the car is borne directly or indirectly by the employer, by 1 per cent of the original market value of the car.

^<[10]

^[10]>

(a) The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent of the original market value of the car.

^<[10]

(b) Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to that year.

^[42]>

(c) This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.

^<[42]

^[16]>

^[4]>

(c) Notwithstanding paragraphs (a) and (b), the cash equivalent of the benefit of a car for the year of assessment 2001 shall be 74 per cent of the amount of the cash equivalent of the car for that year as ascertained under those paragraphs.

^<[4]

^<[16]

^[17]>

(d) This subsection is subject to subsection 5 (4B) for years of assessment 2009 and subsequent years.

^<[17]

(4) ^[11]>(a) Where in relation to a person the business mileage for a year of assessment exceeds 15,000 miles, the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3), shall be the percentage of that amount applicable to that business mileage under the Table to this subsection.^<[11]

^[11]>

(a) Where in relation to a person the business mileage for a year of assessment exceeds ^[18]>15,000 miles ^{<[18] [18]>}24,000 kilometres^<[18]the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3) shall be the percentage of the original market value of the car applicable to the business mileage under the Table to this subsection.

^<[11]

(b) In the Table to this subsection, any percentage shown in column (3) shall be that applicable to any business mileage for a year of assessment which—

(i) exceeds the lower limit shown in column (1), and

(ii) does not exceed the upper limit (if any) shown in column (2),

opposite the mention of that percentage in column (3).

^[13]>

TABLE
Business mileage		Percentage
lower limit	upper limit
(1)	(2)	(3)
Miles	Miles
15,000	16,000	97.5 per cent
16,000	17,000	95 per cent
17,000	18,000	90 per cent
18,000	19,000	85 per cent
19,000	20,000	80 per cent
20,000	21,000	75 per cent
21,000	22,000	70 per cent
22,000	23,000	65 per cent
23,000	24,000	60 per cent
24,000	25,000	55 per cent
25,000	26,000	50 per cent
26,000	27,000	45 per cent
27,000	28,000	40 per cent
28,000	29,000	35 per cent
29,000	30,000	30 per cent
30,000	—	25 per cent

^<[13]

^[20]>

^[13]>

TABLE
Business Mileage		Percentage of original market value
lower limit	upper limit
(1)	(2)	(3)
miles	miles	per cent
15,000	20,000	24
20,000	35,000	18
25,000	30,000	12
30,000	—	6

^<[13]

^<[20]

^[12]>

(c) Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount determined by applying paragraph (a) as if—

(i) the figure ^[19]>15,000^{<[19] [19]>}24,000^<[19] referred to in that paragraph were replaced by a figure (in this paragraph referred to as the “new figure”) determined by the formula—

[19]>15,000<[19][19]>24,000<[19]	×	A
		365

where—

A is the number of days in the part of the year, and

(ii) each figure in columns (1), (2) and (3) of the Table to this section were reduced in the same proportion as the new figure bears to ^[19]>15,000^<[19][19]>24,000^<[19].

^<[12]

^[20]>

TABLE
Business mileage lower limit	Business mileage upper limit	Percentage of original market value
(1)	(2)	(3)
kilometres	kilometres	per cent
24,000	32,000	24
32,000	40,000	18
40,000	48,000	12
48,000	—	6

^<[20]

^[43]>

^[21]>

(d) This subsection is subject to subsection (4B) for years of assessment 2009 and subsequent years.

^<[21]

^<[43]

^[43]>

(d) This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.

^<[43]

^[22]>

^[1]>

(4A) As respects the year of assessment 2001, subsection (4) shall apply—

(a) as if in paragraph (a) of that subsection “11,100 miles” were substituted for “15,000 miles”,

and

(b) as if the following were substituted for the Table to that subsection:

TABLE
Business mileage		Percentage
lower limit	upper limit
(1)	(2)	(3)
Miles	Miles
11,100	11,840	97.5 per cent
11,840	12,580	95 per cent
12,580	13,320	90 per cent
13,320	14,060	85 per cent
14,060	14,800	80 per cent
14,800	15,540	75 per cent
15,540	16,280	70 per cent
16,280	17,020	65 per cent
17,020	17,760	60 per cent
17,760	18,500	55 per cent
18,500	19,240	50 per cent
19,240	19,980	45 per cent
19,980	20,720	40 per cent
20,720	21,460	35 per cent
21,460	22,200	30 per cent
22,200	—	25 per cent

^<[1]

^<[22]

^[44]>

(4A) (a) For the year of assessment 2023 and subsequent years, the cash equivalent of the benefit of a car shall be an amount determined by the formula—

Original market value × A

where—

A is a percentage, based on vehicle categories as set out in Table B to this subsection, determined in accordance with column (3), (4), (5), (6) or (7), as the case may be, of Table A to this subsection.

^[45]>

(aa) Notwithstanding paragraph (a), where a car in respect of which this subsection applies is an electric vehicle, the cash equivalent of the benefit of the car ascertained under paragraph (a) shall be computed on the original market value of the car reduced by:

(i) €35,000 in respect of a car made available in the period 1 January 2023 to 31 December 2023;

(ii) €20,000 in respect of a car made available in the period 1 January 2024 to 31 December 2024;

(iii) €10,000 in respect of a car made available in the period 1 January 2025 to 31 December 2025.

^<[45]

(b) In Table A to this subsection, any percentage shown in column (3), (4), (5), (6) or (7), as the case may be, shall be the percentage applicable to any business mileage for a year of assessment which—

(i) exceeds the lower limit (if any) shown in column (1), and

(ii) does not exceed the upper limit (if any) shown in column (2),

opposite the mention of that percentage in column (3), (4), (5), (6) or (7), as the case may be.

(c) Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to that year.

(d) For the purposes of this section, the vehicle categories set out in column (1) of Table B to this subsection refer to a car whose CO₂ emissions, determined by virtue of section 130 of Finance Act 1992, are set out in the corresponding entry in column (2) of Table B to this subsection.

TABLE A
Business mileage		Vehicle Categories
lower limit	upper limit	A	B	C	D	E
(1)	(2)	(3)	(4)	(5)	(6)	(7)
kilometres	kilometres	per cent	per cent	per cent	per cent	per cent
--	26,000	22.5	26.25	30	33.75	37.5
26,001	39,000	18	21	24	27	30
39,001	52,000	13.5	15.75	18	20.25	22.5
52,001	--	9	10.5	12	13.5	15

TABLE B
Vehicle Category	CO2 Emissions (CO2 g/km)
(1)	(2)
A	0g/km up to and including 59g/km
B	More than 59g/km up to and including 99g/km
C	More than 99g/km up to and including 139g/km
D	More than 139g/km up to and including 179g/km
E	More than 179g/km

^<[44]

^[23]>

(4B) (a) Where a new car is provided for the first time for the year of assessment 2009 or any subsequent year, the cash equivalent of the benefit shall be an amount determined by the formula:

Original market value × A

where—

A is a percentage, based on vehicle categories and business mileage, determined in accordance with column (3), (4) or (5), as the case may be, of Table A to this subsection.

(b) In Table A to this subsection, any percentage shown in column (3), (4) or (5), as the case may be, shall be the percentage applicable to any business mileage for a year of assessment which—

(i) exceeds the lower limit (if any) shown in column (1), and

(ii) does not exceed the upper limit (if any) shown in column (2),

opposite the mention of that percentage in column (3), (4) or (5), as the case may be.

(c) Any reference in this section to a vehicle in any of the vehicle Categories A to G as set out in the first column of Table B to this subsection is a reference to a vehicle whose CO₂ emissions, confirmed by reference to the relevant EC type approval certificate or EC certificate of conformity, are set out in the corresponding entry in the second column of Table B to this subsection.

TABLE A
Business mileage		Vehicle Categories	Vehicle Categories	Vehicle Categories
lower limit	upper limit	A, B and C	D and E	F and G
(1)	(2)	(3)	(4)	(5)
kilometres	kilometres	per cent	per cent	per cent
—	24,000	30	35	40
24,000	32,000	24	28	32
32,000	40,000	18	21	24
40,000	48,000	12	14	16
48,000	—	6	7	8

TABLE B
Vehicle Category	CO2 Emissions (CO2 g/km)
(1)	(2)
A	0g/km up to and including 120g/km
B	More than 120g/km up to and including 140g/km
C	More than 140g/km up to and including 155g/km
D	More than 155g/km up to and including 170g/km
E	More than 170g/km up to and including 190g/km
F	More than 190g/km up to and including 225g/km
G	More than 225g/km.

^<[23]

(5) (a) Where for a year of assessment—

(i) a person, in the performance of the duties of his or her employment, spends 70 per cent or more of his or her time engaged on such duties away from the place of business of his or her employer, and

(ii) in relation to that person, the business mileage exceeds ^[24]>5,000 miles^{<[24] [24]>}8,000 kilometres^<[24],

then, if the person so elects in writing to the inspector, the cash equivalent of the benefit of the car for that year of assessment in relation to the person shall, instead of being the amount ascertained under subsection (3) or (4), as may otherwise be appropriate, be 80 per cent of the amount ascertained under subsection (3).

^[24]>

^[25]>

(aa) As respects the year of assessment 2001, paragraph (a) shall apply as if in subparagraph (ii) of that paragraph “3,700 miles” were substituted for “5,000 miles”.

^<[25]

^<[24]

(b) When requested in writing by the inspector, a person who makes an election under paragraph (a) for a year of assessment shall within 30 days of the date of such request furnish to the inspector a relevant log book in relation to that year of assessment.

(c) This subsection shall not apply as respects a year of assessment where—

(i) when requested to do so, a person fails to deliver to the inspector within the time specified in paragraph (b) a relevant log book in relation to that year of assessment, or

(ii) the time spent by a person in the performance of the duties of his or her employment in that year of assessment is on average less than 20 hours per week.

(d) Subsection (7)(e) shall apply for the purposes of this subsection as it applies for the purposes of subsection (7).

(e) Where a person makes an election under paragraph (a) for a year of assessment, such person shall retain the relevant log book in relation to that year of assessment for a period of 6 years after that end of that year or for such shorter period as the inspector may authorise in writing.

(6) (a) Where any amount is to be treated as emoluments of an employment under subsection (2)(b)(ii) for a year of assessment, it shall be the duty of the person who is chargeable to tax in respect of that amount to deliver in writing to the inspector, not later than 30 days after the end of that year of assessment, particulars of the car, of its original market value and of the business mileage and private mileage for that year of assessment.

(b) Where in relation to a year of assessment—

(i) a person makes default in the delivery of particulars in relation to—

(I) the original market value of a car in respect of which this section applies in relation to him or her,

(II) his or her business mileage for the year, or

(III) his or her private mileage for the year,

or

(ii) the inspector is not satisfied with the particulars which have been delivered by the person,

then, the original market value or business mileage or private mileage which is to be taken into account for the purpose of computing the amount of the tax to which that person is to be charged shall be such value or mileage, as the case may be, as according to the best of the inspector’s judgment ought to be so taken into account and, in the absence of sufficient evidence to the contrary, the business mileage for a year of assessment in relation to a person shall be determined ^[26]>by deducting 5,000 from the total number of miles travelled^{<[26] [26]>}by deducting 8,000 from the total number of kilometres travelled^<[26] in that year by that person in a car or cars in respect of which this section applies in relation to that person.

^[27]>

^[3]>

(bb) As respects the year of assessment 2001, paragraph (b) shall apply as if “3,700 miles” were substituted for “5,000 miles”.

^<[3]

^<[27]

^[14]>

(c) The inspector, in making a computation for the purposes of an assessment or of the ^[5]>Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960)^<[5][5]>Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)^<[5], before the end of the year of assessment to which the computation relates, in relation to a person in relation to whom this section applies for that year of assessment, shall make an estimate of that person’s business mileage for the purpose of the computation, and section 926 shall, with any necessary modifications, apply in relation to the estimate so made as it applies in relation to an estimate made under that section.

^<[14]

(d) A value or mileage taken into account under paragraph (b) may be amended by the Appeal Commissioners ^[29]>or the Circuit Court on the hearing or the rehearing of an appeal^<[29][29]>in determining an appeal^<[29] against an assessment in respect of the employment in the performance of the duties of which the business mileage is done.

(7) (a) This subsection shall apply to any car in the case of which the inspector is satisfied (whether on a claim under this subsection or otherwise) that it has for any year been included in a car pool for the use of the employees of one or more employers.

(b) A car shall be treated as having been so included for a year if—

(i) in that year the car was made available to and actually used by more than one of those employees and in the case of each of them was made available to him or her by reason of his or her employment but was not in that year ordinarily used by any one of them to the exclusion of the others,

(ii) in the case of each of them, any private use of the car made by him or her in that year was merely incidental to his or her other use of the car in the year, and

(iii) the car was in that year not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the car available to them.

(c) Where this subsection applies to a car, the car shall be treated under this section as not having been available for the private use of any of the employees for the year in question.

(d) A claim under this subsection in respect of a car for any year may be made by any one of the employees mentioned in paragraph (b)(i) (they being referred to in paragraph (e) as “the employees concerned”) or by the employer on behalf of all of them.

(e) ^[30]>(i) Any person aggrieved by a decision of the inspector on any question arising under this subsection may, by notice in writing to that effect given to the inspector within 2 months from the date on which notice of the decision is given to that person, make an application to have his or her claim for relief heard and determined by the Appeal Commissioners^<[30][30]>(i) An employer aggrieved by a decision of the inspector that a car has not been included in a car pool for the use of the employees of one or more employers may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 2 months after the date of the notice of that decision^<[30].

^[31]>

(ii) Where an application is made under subparagraph (i), the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

^<[31]

(iii) On an appeal against the decision of the inspector on a claim under this section all the employees concerned may take part in the proceedings, and the determination of the Appeal Commissioners ^[32]>or the Circuit Court, as the case may be,^<[32] shall be binding on all those employees, whether or not they have taken part in the proceedings.

(iv) Where an appeal against the decision of the inspector on a claim under this subsection has been determined, no appeal against the inspector’s decision on any other such claim in respect of the same car while in the same car pool and the same year shall be entertained.