SE23317 - Car benefits: cars held simultaneously 1999/2000 to 2001/02 - example
Paragraph 4 Schedule 6 ICTA 1988 as amended by Section 47 FA 1999
This example illustrates the points covered at
SE23324.
Two cars are made available to the same employee concurrently
during 99/2000.
- Car A has a list price of £15,000 (no accessories) and the employee uses it for 12,000 miles of business travel in 99/2000.
- Car B has a list price of £20,000 (no accessories) and the employee uses it for 4,000 miles of business travel in 99/2000.
Both cars are under 4 years old and were available for the whole
tax year.
Stage 1 – Identify the 'first' car (
SE23324)
This is the car used to the greatest extent for the
employee’s business travel, and must therefore be car A.
Stage 2 – Calculate the car benefit of car A
| Using table at SE23324 we find that with 12,000 miles of business travel, car A falls into the 25% band |
|
| £15,000 x 25% | £3,750 |
Stage 3 – Calculate the car benefit of car B.
| Using table at SE23324 we find that with 4,000 miles of business travel, car B falls into the 35% band |
|
| £20,000 x 35% | £7,000 |
| Total car benefit charge for the two cars is therefore £3,750 + £7,000 | £10,750 |
