A semiconductor element including an MISFET exhibits diode characteristics in a reverse direction through an epitaxial channel layer. The semiconductor element includes: a silicon carbide semiconductor substrate of a first conductivity type, semiconductor layer of the first conductivity type, body region of a second conductivity type, source region of the first conductivity type, epitaxial channel layer in contact with the body region, source electrode, gate insulating film, gate electrode and drain electrode. If the voltage applied to the gate electrode is smaller than a threshold voltage, the semiconductor element functions as a diode wherein current flows from the source electrode to the drain electrode through the epitaxial channel layer. The absolute value of the turn-on voltage of this diode is smaller than the turn-on voltage of a body diode that is formed of the body region and the first silicon carbide semiconductor layer.