Tax Issues - Reduction in Taxible Benefits
 Cars
available for only part of the year
The car benefit charge is reduced proportionately if the
car is unavailable for part of the year, for example if it
is purchased part way through the year. The car benefit will
also be reduced if the car is not available for a continuous
period of at least 30 days.
Contributions By Your Employee
Capital contributions by employees towards the cost of the
car or accessories will reduce the price of the car for tax
purposes, pound for pound - up to a limit of £5,000,
including VAT. This will apply to contributions which the
employee made in the past towards a car which is still available
to the employee after 5 April 1994. For examples, see overleaf.
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