Jimmy Deenihan
Ceist:230 Mr. Deenihan asked the Minister for Finance if he will exclude company car beneficiaries who have to use their cars for work from benefit-in-kind; and if he will make a statement on the matter. [27637/00]
Written Answers. - Tax Relief.
Where a company car is made available by an employer to an employee or director for his or her personal use, the value, or "cash equivalent", of that benefit is charged to income tax as if the value were paid to the employee or director in cash. I should stress that the charge to tax is made in respect of the availability of the car for private use; no charge to tax arises where the car is used solely for business purposes.
There are significant reliefs available to the taxpayer who is charged to tax on the availability of a company car for private use and these reliefs relate directly to the degree to which the car is used for business purposes. For example, an employee or director who undertakes 30,000 or more business miles in a year will have his or her charge to income tax reduced to 25% of the charge which would apply if the car were used solely for private purposes.