Tax Issues - In More Details
 Price
The price of a car for a year for tax purposes will usually
be the total of:
- manufacturer's, importer's or distributor's list price
of the car on day before date of registration
- taxes (VAT, and car tax if appropriate) - but not vehicle
excise duty (road tax)
- delivery charges (including VAT)
- list price of any accessory fitted before the car was
first made available to the employee, including VAT, delivery
and fitting charges
- the list price of any accessory or set of accessories
(eg. alloy wheels) over £100 (including VAT, fitting
and delivery) fitted after the car was first made available
to the employee. But this only applies for accessories fitted
after 31 July 1993. Accessories fitted after the car was
made available increase the price for the tax year in which
they were fitted and subsequent years (the tax year runs
from 6 April in one year to 5 April in the next).
There are separate rules for :
- 'classic cars'
- cars without a list price: the price then is what would
have been published if the manufacturer or supplier had
published one
There is an upper limit of £80,000 on the price of
a car (including accessories) for tax purposes. Where the
price of a car exceeds this figure, its price for tax purposes
will be £80,000.
|
