June 2023 to March 2024 exams Watch free ACCA TX lectures
Answer to Example 4 Lewis The CO
2
emissions are above 55g/km, so the relevant percentage is 28%, calculated as follows:
122 rounded down to 120:
120 - 55
=13% + 15% = 28%
5
List price £13,500 x 28% = 3,780
The 4% surcharge for diesel cars is not applied because the RDE2 standard is met. The motor car
was only available for eight months of 2022/23, so
the benefit is £2,520 (£3,780
×
8/12).
Nico The CO
2
emissions are above the base level figure of 55 grams per kilometre. The CO
2
emissions figure
of 162 is rounded down to 160 so that it is divisible by five. The base level percentage of 15% is
increased in 1% steps for each complete 5 grams per kilometre above the base level, so the relevant
percentage is 36% (15% + 21% (160 – 55 = 105/5)). The motor car was available throughout 2022/23
so
the benefit is £5,904 (16,400
×
36%).
Fernando The CO
2
emissions are above the base level figure of 55 grams per kilometre. The relevant
percentage is 53% (15% + 38% (245 – 55 = 190/5)), but this is restricted to the maximum of 37%.
The motor car was available throughout 2022/23 so
the benefit is £7,162 (22,600
×
37% = 8,362 -
1,200). The contribution by Fernando towards the use of the motor car reduces the benefit.
Jenson As CO
2
emissions do not exceed 50 grams per kilometre the electric range of the car is relevant, so
as this is between 70 and 129 miles the relevant percentage is 5%.
The benefit is £800 (£16,000
×
5%) for 2022/23, as Jenson was provided with the car throughout the 2022/23 tax year.
Sebastian The CO
2
emissions are above 55g/km. The CO
2
emissions figure of 103 is rounded down to 100 so
that it is divisible by five. The relevant percentage is 28% (15% + 9% (100 - 55 = 45/5 = 9%) + 4%
(diesel car supplement). The 4% surcharge for diesel cars is applied because the RDE2 standard is
not met.
