Revenue Note for Guidance
This section sets out the circumstances in which an employee is regarded as having an entitlement to use a parking space, the circumstances in which an employee is not so regarded and the circumstances in which an employee will cease to be so regarded.
(1) The circumstances in which an employee will be regarded as having an entitlement to use a parking space are:
a) the employee has some form of authorisation from the employer or is otherwise given permission (including oral permission) by the employer to use a parking space,
b) the employee holds or has been issued with any form or means of access to a parking space,
c) the employee has been allocated a dedicated parking space,
d) the employee has been allocated a parking space on a shared basis or similar arrangement,
e) the availability of a parking space to the employee is on a “first come, first served” basis.
(2) An employee will not be regarded as having an entitlement to use a parking space in circumstances where authorisation, permission or access is given to the employee occasionally (i.e. for not more than a total of 10 days in a year) and the actual use of the space is also for not more that 10 days in a year. For this purpose, part of a day is treated as a full day.
(3) An employee will cease to be regarded as having an entitlement to use a parking where the employee disclaims entitlement, the entitlement lapses or the employer withdraws entitlement for any reason. Where relevant, the employee must return any form of authorisation or form/means of access. In all circumstances, the employee must cease actual use of the parking space.
(4) For the purposes of subsection (1)(a), permission to use a space is to be regarded as given to an employee where the employer has entered into an arrangement or agreement with the employee or any other person to provide a space to the employee.
Relevant Date: Finance Act 2021