SE23301 - Car benefits: calculating the car benefit charge 1994/95 to 1998/99 inclusive - general

Section 157(2) and paragraphs 1-7 Schedule 6 ICTA 1988

For 1994/95 to 1998/99 the cash equivalent of the benefit of the car is 35 per cent of the price of the car as regards the year. This amount is called the “full car benefit charge” in this part of the SE guidance. It may need to be reduced for

• business mileage ( SE23302 onwards)
• the age of the car ( SE23330)
• certain periods when the car was unavailable ( SE23500 onwards)
• payments for private use of the car ( SE23530 onwards)

to give the amount of the benefit chargeable to tax.

For an example of how the cash equivalent of the car benefit is calculated see example SE23545.

For a worksheet that you can use to calculate the car benefit see SE23785.