SE23320 - Car benefits: calculating the car benefit charge 1999/2000 to 2001/02 - general

Section 157(2) ICTA 1988, Paragraphs 1 - 7 Schedule 6 ICTA 1988 and Section 47 FA 1999

For 99/2000 to 2001/02 the starting point for calculating the cash equivalent of the benefit of the car is a percentage of the price of the car as regards the year, which is set according to the level of business travel in the car during the tax year ( SE23321). This amount is then reduced for

• 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 SE23546.

For a worksheet that you can use to calculate the car benefit see SE23786.

Note: From 2002/03 onwards the percentage of the price of the car is based primarily on carbon dioxide emissions of the car, and the adjustments for business mileage and age no longer apply (SE23350onwards). There is no change to the reductions for periods of unavailability and payments for private use of the car.