Chargeable on employees earning £8,500 or over (including benefits), and directors.

Car Benefit

The charge is a percentage of the list price

Notes

1. The list price relates to the day before first registration and includes accessories. The price is subject to an upper limit of £80,000.



2. 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.



3. The age of the vehicle is determined at the end of the tax year.



4. Special rules apply to cars at least 15 years old with a market value of £15,000 or more and to second cars.



5. Van benefit includes fuel for private use.



6. Payments by employees for private use may reduce the above benefits.

Car Fuel Benefit

Car fuel benefit is reduced to nil if the employee pays for all private fuel.

2002 and Beyond:

It has been announced that:

From 2002/03 the mileage and older car discounts will cease to apply and the percentage of list price charged to tax will be graduated according to carbon dioxide emissions.

The standard percentage will be 15%, applying to all cars with CO² emissions of up to 165 g/km for 2002/03, 155 g/km for 2003/04 and 145 g/km for 2004/05, and with a 3% supplement for diesel cars.

The percentage will increase in increments of 1% for every additional 5 g/km of CO² emitted over the above baseline figures, to a maximum of 35% (petrol or diesel).