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BIK when director is outside UK for part of the year

BIK when director is outside UK for part of the...

I have a director that is UK resident for tax purposes, and stays in Finland every weekend. He also spends a lot of time out of the country on business.

He has the benefit of a company car from his UK company, on which he declares a full BIK.

My question is, as he only spends a proportion of his time here, is he liable for the full BIK, or can it be restricted? I appreciate it is "available for private use" all year round, but he is quite obviously not using it if he is outside of the UK.


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11th Apr 2012 10:17

Answered your own question

As you rightly say, the test is "available for use", not is he available to use it! Even if he is lying in a hopsital bed, the car is still available. The only way is for him to hand the car back to his employer whilst he is away but this is not very practical if he is only away for short periods at a time.

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11th Apr 2012 10:22


I may be wrong, but I think that the period when the car is "unavailable" has to be a minimum of 30 days - see HMRC Booklet CA 33 which quotes ITEPA 2003 s143(2).

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18th Apr 2012 11:12

Thanks GBuckell and JazzySasha

Thanks for replies guys - was just seeing if there was an angle here, but I don't think there is.

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