20 |
cars by their common employer, concessionary relief ensures that each is subject to a single rather than double charge.91 The maximum market value which can be taken for a car, whether or not it is classic, is £80,000, which may be raised by Treasury regulation;92 making the current maximum cash equivalent £28,000. Where two or more members of a family are chargeable in respect of the same car, the benefit is apportioned between them.93 |
17A.4.1.2 Salary Sacrifice |
Section 119 (ex 157A) provides that where the employee is offered a benefit which is an alternative to the use of a car, eg a payment of £20 a year, the mere fact that this alternative is offered does not make the benefit chargeable as general earnings under section 62 (ex section 19). The point is that the offer of £20 may make the benefit taxable under section 62 and so make NIC chargeable only on £20. Section 119 prevents this avoidance.94 |
17A.4.1.3 The Appropriate Percentage |
Until 2002 the taxable benefit varied according to the amount of business mileage done. While this was compatible with feelings of fairness it also encouraged high business mileage related mileage; the notes to the Finance Bill 1999 suggested that 300 million extra business miles were driven. |
Current rules95 for car registered on or after 1 January 199896 are based on a mixture of the price of the car and a level of CO2 emissions.97 However other variables are whether the car if a diesel or a car without an emissions figure at all (eg an electric car) and the date of first registration. The lowest charge is set at 155 gm per kilometre |