Vehicle Benefits
Chargeable on employees earning £8,500 or over (including benefits), and directors.
Car Benefit
The taxable benefit is calculated as a percentage of the
list price of the car, when new, plus certain accessories. The percentage is based on the car's CO2 emissions, measured in grams per kilometre. That figure can be found, for cars registered on or after 1 January 1998:
- on the car's V5 registration document
- from your dealer
- in the data pages of some car magazines (current models only),
or
- from the website of the Society of Motor Manufacturers and
Traders - see http://www.smmt.co.uk/co2/co2search.asp#
The minimum taxable percentage is 15%, for those cars running
on petrol and emitting less than 170 g/km of carbon dioxide.
This rises to 35% for petrol cars with emissions of 265 g/km,
or more. For diesel powered cars there is a 3% "supplement",
but the maximum remains 35%.
Once you have ascertained your car's CO2 emissions rate, you
can find your taxable percentage for 2002/03 using the following
table:
|
CO2 emissions in g/km |
|
Taxable percentage |
|
CO2 emissions in g/km |
|
Taxable percentage |
| |
|
|
|
Petrol |
Diesel |
|
|
|
|
|
Petrol |
Diesel |
| Less
than 170 |
|
|
15% |
18% |
|
220 |
to |
224.9 |
|
26% |
29% |
| 170 |
to |
174.9 |
|
16% |
19% |
|
225 |
to |
229.9 |
|
27% |
30% |
| 175 |
to |
179.9 |
|
17% |
20% |
|
230 |
to |
234.9 |
|
28% |
31% |
| 180 |
to |
184.9 |
|
18% |
21% |
|
235 |
to |
239.9 |
|
29% |
32% |
| 185 |
to |
189.9 |
|
19% |
22% |
|
240 |
to |
244.9 |
|
30% |
33% |
| 190 |
to |
194.9 |
|
20% |
23% |
|
245 |
to |
249.9 |
|
31% |
34% |
| 195 |
to |
199.9 |
|
21% |
24% |
|
250 |
to |
254.9 |
|
32% |
35% |
| 200 |
to |
204.9 |
|
22% |
25% |
|
255 |
to |
259.9 |
|
33% |
35% |
| 205 |
to |
209.9 |
|
23% |
26% |
|
260 |
to |
264.9 |
|
34% |
35% |
| 210 |
to |
214.9 |
|
24% |
27% |
|
265 |
and
over |
|
35% |
35% |
| 215 |
to |
219.9 |
|
25% |
28% |
|
|
|
|
|
|
|
Van Benefit
|
|
Van under 4 years old
|
Van 4 years old, or over
|
|
Benefit per vehicle
|
£500
|
£350
|
Notes
- The list price relates to the day before first registration and includes accessories. The price is subject to an upper limit of £80,000.
- The list price is reduced by the employee’s capital contribution when the car is first made available, subject to a maximum deduction of £5,000.
- Special rules apply to cars at least 15 years old with a market value of £15,000 or more.
- Van benefit includes fuel for private use.
- Payments by employees for private use may reduce the above benefits.
Car Fuel Benefit
| |
Petrol |
Diesel |
| |
2002/03
|
2001/02
|
2002/03
|
2001/02
|
| |
£ |
£ |
£ |
£ |
Up to 1400 cc |
2,240
|
1,930
|
2,850
|
2,460
|
1401- 2000cc |
2,850
|
2,460
|
2,850
|
|
Over 2000cc |
4,200
|
3,620
|
4,200
|
3,620
|
Notes
Car fuel benefit is reduced to nil if the employee pays for all private fuel.
2003 and Beyond:
It has been announced that:
The point at which the taxable percentage rises above 15%
will be reduced for 2003/04 (from 169 to 159) and for 2004/05
(from 159 to 149.) For each of those years, the maximum 35%
taxable benefit will apply to:
| |
Petrol
|
Diesel
|
| 2003/04 |
255 and over
|
240 and over |
| 2004/05 |
245 and over
|
230 and over |
|
