Tx notes fa22 Final

 
Example 3
 
 
Gerald’s employer purchased a TV for his use on 1 June 2021, costing £900. On 6 April 2022 Gerald 
was given the TV by his employer (its market value then being £250).
Calculate the benefit assessable on Gerald in respect of the gift, on the basis of: 
(a)
if Gerald made no payment for the TV


(b)
if Gerald paid his employer £250 for the TV 

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June 2023 to March 2024 exams
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8.7. Company Car Benefit 
The assessable benefit for each car is: the 
list price
of the car x 
CO
2
 emissions %
. 
The 
list price
of the car is determined by the list price when the vehicle was first registered, together 
with any 
optional extras
and NOT the price paid.
It is possible for the employee to make a 
capital
contribution towards the purchase of the car and 
relief is available up to £5,000 (max).
The 
CO
2 
emissions
will be given to you in the exam as follows:
Petrol and Diesel cars: 
The base level of CO
2
emissions is 55 grams per kilometre.
The percentage rates applying to petrol cars (and diesel cars meeting the RDE2 standard) with CO
2
emissions up to this level are:
51 grams to 54 grams per kilometre 
15%
55 grams per kilometre
16%
A 2% percentage applies to electric-powered motor cars with zero CO
2 
emissions. 
Hybrid cars: 
For hybrid-electric motor cars with CO
2
emissions between 1 and 50 grams per kilometre. the 
electric range of the car is relevant:
Electric cars: 
Electric Range
130 miles or more
2%
70-129 miles
5%
40-69 miles
7%
30-39 miles
12%
less than 30 miles
15%
The car benefit is calculated as follows:
๏
List price x CO
2 
emissions
๏
For cars with emissions over 55g/km the percentage is calculated as 15% plus 1% for every 
complete 5g/km over 55 grams
๏
To calculate the additional percentage round emissions down to nearest 5 g/km – deduct 55g - 
divide by 5
๏
Add a 4% supplement for diesel cars that do not meet the real driving emissions 2 (RDE2) 
standard. 
๏
Maximum = 37%

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