Tx notes fa22 Final

June 2023 to March 2024 exams
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The car benefit itself is proportionately reduced if:
๏
a motor car is unavailable for periods of at least 30 days of the tax year, and 
๏
where the employee makes a contribution to the employer for the use of the motor car.
Second motor cars
๏
Where more than one motor car is made available to an employee, the benefit of each motor 
car is computed as above.
Pool cars
The use of a pool car does not result in a company car benefit A pool car is one provided for the use 
of any employee to use for business purposes and is kept at the business place of work.
 
Example 4
 
 
During 2022/23 Speed Merchants plc provided the following employees with company motor cars:
Lewis
was provided with a new diesel powered company car on 6 August 2022. The motor car has a 
list price of £13,500 and an o
ffi
cial CO
2
emission rate of 122 grams per kilometre. The motor car 
meets the RDE2 standard. 
Nico 
was provided with a new petrol powered company car throughout 2022/23. The motor car has 
a list price of £16,400 and an o
ffi
cial CO
2
emission rate of 162 grams per kilometre. 
Fernando
was provided with a new petrol powered company car throughout 2022/23. The motor car 
has a list price of £22,600 and an o
ffi
cial CO
2
emission rate of 249 grams per kilometre. Fernando 
paid Speed Merchants plc £1,200 during 2022/23 for the use of the motor car.
Jenson
was provided with a new hybrid electric powered company car throughout 2022/23. The 
motor car had a list price of £16,000, an o
ffi
cial CO
2
emission rate of 38 grams per kilometre and an 
electric range of 110 miles.
Sebastian
was provided with a new diesel car throughout 2022/23. The motor car had a list price of 
£14,000 and an o
ffi
cial CO
2
emission rate of 103 grams per kilometre. The motor car does not meet 
the RDE2 standard.