How will the new car benefits system work?
• From 6 April 2002 the charge on the benefit of a company car is to be linked to carbon dioxide (CO2) emissions of that car, measured in grams per kilometre (g/km). The reductions for business mileage and older cars will no longer apply. The starting point for calculating the benefit charge will continue to be the list price of the car (plus accessories) but the percentage of price actually charged to tax will depend on the car ‘s CO2 emissions. • The normal minimum charge will be on 15% of the car ‘s price and the maximum charge will be on 35% of the car ‘s price. • There will be a system of discounts for cars that use fuels that are particularly environmentally friendly, and these can reduce the minimum charge to less than 15%. • There will also be a supplement of 3% for diesel cars, but this will not increase the level of the maximum charge above 35%.
Related Questions
- I want the benefits of a personal transportation system without buying a specially outfitted car. How can the McCrary PTS compete in this regard with public transportation such as rail systems?
- Under the current car benefits system the basic car benefit charge can be adjusted, for example for high business mileage and private use payments. Will this still be the case?
- I have an old car, which has just begun rusting. Are there any benefits in installing the RustStop system?
