Company Cars
of the car, up to a maximum value of £5,000.
The maximum assessable value was restricted to an upper limit of £80,000, after deduction of any capital contributions. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Reduced Car Benefit Charge The full benefit charge was based on 35% of the cost of the car. This could be reduced where the car was used for business purposes. The reduced rates related to the level of business mileage were: Business miles p.a. Tax charge Less than 2500 35% full tax charge applied 2500 to 17999 25% charge (1/3 reduction pre 6th April 1999) 18000 or more 15% charge (2/3 reduction pre 6th April 1999) The tax charge was reduced by one quarter if the car was 4 years old or more at the end of the tax year. The age was determined from the date of its first registration. A reduction for unavailability was applicable for any day that fell: • before the first day the car was made available to the employee, or • after the last day on which it was available, or • within a period of 30 days or more during which the car was not available. If the car was not available for a period of less than 30 days, no reduction was applied. During which period there was no additional charge in respect of any replacement car made available, provided it was of a similar type and quality. Second car discount Generally a second car was taxed on 35% of the price of that car each year. Where annual business use exceeded 18000 miles, the charge was reduced to 25%. No printing, copying or reproduction permitted. Qualifying Low Emission Cars - QUALECs From 6th April 2008 - 5th April 2012 a new band was introduced for cars with emission figures of exactly 120 g/km or lower. Cars qualifying under this criterion were called ‘Qualifying Low Emission Cars’ (QUALECs) and attracted a 10% charge. QUALECs qualified for the diesel supplement however no adjustment for other types of fuel was permitted. Hence the only permitted percentage for this band was 10% for petrol cars and 13% for diesel.
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