A company car tax charge will arise if three conditions are all met:

first, a car is made available to an employee or a member of the employee's family or household;

second, the car is so available by reason of the employment;

finally, it is available for the employee's or member's private use.

If these conditions are met, the cash equivalent of the benefit of the car is treated as earnings.

If an employee is given the choice between a car and a cash alternative, the employee is taxed on whichever is chosen.

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