188体育

Examples 1 to 5 relate to the 2018 to 2019 tax year.

Examples 6 to 7 relate to the 2020 to 2021 tax year.

Steps 1 and 2 (chapter 12 paragraphs 12.4 to 12.15) .

Example 1

A car with a list price (including standard accessories, VAT, number plates and delivery) of 拢17,960 is made available to an employee. It鈥檚 supplied with optional metallic paint costing 拢245, the price for which is published by the car鈥檚 manufacturer.

Before being made available to the employee it鈥檚 also fitted with an electrically-operated radio aerial from an independent manufacturer costing 拢95 (including fitting).

All the optional accessories are qualifying accessories. The radio aerial has a price of less than 拢100 but it was made available at the time the car was made available and so the 鈥榙e minimis鈥� limit of 拢100 does not apply.

Calculation

Section 123

Step 1: Car 拢17,960

Step 2:

Section 127(1)(a)

Plus Initial extra accessories in the car manufacturer鈥檚 price list.

• metallic paint 拢245

Section 127(1)(b)

Plus Initial extra accessories not in the car manufacturer鈥檚 price list (use price of accessory manufacturer).

• radio aerial 拢95

Section 121(1) step 2

Price of the car after step 2 拢18,300.

Example 2

Employee and car as in Example 1. In September of the same tax year, 2 extra accessories are fitted:

• a Bluetooth device with a list price of 拢360 (including fitting and others), the employee pays 拢100
• roof rails with a list price of 拢80, the employee pays 拢50

Calculation

Sections 126(3) and 127(2)

As above, 拢18,300 plus Later accessory (Bluetooth device) 拢360 = 拢18,660.

Section 121(1) step 2

Minus capital contributions, Bluetooth device 拢100.

Price of the car after step 2 拢18,560.

Sections 126(3) and 132(1)(b)

The price of the roof rails is not added because they鈥檙e below the 鈥榙e minimis鈥� limit of 拢100 and therefore the capital contribution towards them is not deducted.

The figure at step 2 is increased for the whole year because the Bluetooth device was added in the year. There鈥檚 no time-apportionment.

Steps 4 to 6 (chapter 12 paragraphs 12.21 to 12.38).

Example 3 鈥� petrol car

Price of the car is 拢15,000. Approved figure of CO2 emissions is 173g/km.

Round down 173 to 170 Look up appropriate percentage in Appendix 2 鈥� 35%.

No adjustments are needed in paragraph 12.29 so this is the appropriate percentage.

The figure at step 5 is 拢15,000 x 35% = 拢5,250.

Example 4 鈥� diesel car

Price of the car is 拢15,000. Approved figure of CO2 emissions is 156g/km.

Round down 156 to 155 Look up appropriate percentage in Appendix 2 鈥� 32%.

Add 4% diesel supplement (see chapter 12 paragraph 12.29), so appropriate percentage is 36%.

The figure at step 5 is 拢15,000 x 36% = 拢5,400.

Example 5 鈥� hybrid electric car with petrol

Price of the car is 拢18,000. Approved figure of CO2 emissions is 104g/km.

Round down 104 to 100.

Appropriate percentage for a petrol-powered hybrid with CO2 emissions of 100g/km is 21% (Appendix 2).

No adjustment from paragraph 12.29 is needed The figure at step 5 is 拢18,000 x 21% = 拢3,780.

Example 6 鈥� hybrid electric car with petrol 2020 to 2021

Price of the car is 拢32,000. The car was first registered on 22 March 2020. The approved CO2 emissions figure is 50g/km. The zero emission mileage is 77.

The appropriate percentage for a petrol-powered hybrid with CO2 emissions of 50g/km and a a zero emission mileage of 77 miles is 5% - the car was first registered before 6 April 2020 so the NEDC emissions figure on the certificate of conformity should be used.

No adjustment from paragraph 12.29 is needed. The figure at step 5 is 拢32,000 x 5% = 拢1,600.

Example 7 鈥� hybrid electric car with petrol 2020 to 2021

The price of car is 拢22,000. The car was first registered on 6 April 2020. The approved CO2 emissions figure is 50g/km. The zero emission mileage is 65.

The appropriate percentage for a petrol-powered hybrid with CO2 emissions of 50g/km and a zero emission mileage of 65 miles is 6% - the car was first registered on or after 6 April 2020 so the WLTP emissions figure on the certificate of conformity should be used.

No adjustment from paragraph 12.29 is needed. The figure at step 5 is 拢22,000 x 6% = 拢1,320.