An employee was given their company car as a gift. The car value is £10,000, and it's a 25-year award. HMRC’s Employment Income manual at EIM01501 implies a £50 exemption for each year of service, with a minimum of 20 years. Is there a maximum number of years? Or would it simply be a 25 x £50 = £1,250 exemption, making the P11D benefit value £8,750? 

Arthur Weller replies:  

You are referring to the rules for the exemption for long-service testimonial awards. The source for this is ITEPA 2003, s 323. There is no mention there of any maximum number of years. Nor is there any mention of any maximum number of years in the Employment Income Manual at EIM01500 to EIM01510. So, you can assume that it would apply to 25 years, as you have written.