22 July 2025
HM Revenue and Customs (HMRC) has set out the amended rules for tax treatment of cars and vans made available for private use where there is a qualifying arrangement.
The draft legislation, made available as part of Legislation Day, details what constitutes a qualifying arrangement:
“It sets out that qualifying arrangements mean the transfer of the ownership of the vehicle to the employee where one or more of the following criteria are met:
- where there are restrictions on the employee’s private use of the vehicle
- where the employee is not the registered keeper of the vehicles
- where, as part of the arrangement, there is a set buyback or onward sale arrangement”
Where applicable, a benefit charge will apply. This is due to apply from 6 October 2026, so there is some time to make the necessary arrangements or changes for these rules.
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