Company Car Taxation

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Tue 19 Dec 2000 13:01
Company Car Taxation - Jon Virgoe
Are there any moves afoot to get the Government to realise that many company car drivers are being unfairly penalised because the "list price" of their cars when purchased is used to calculate the taxable benefit; rather than the current list price. And the difference between these prices has been (rightly) created by the pressure by the Government on the manufacturers to reduce their prices more into line with the rest of Europe, rather than the overinflated prices of so-called "Rip-Off Britain"

As an example, my car when bought 15months ago had a list price of £18K; now the list price is just over £15K. Am I unreasonable to consider I am being taxed on a benefit which will be around 15% too high - ie. paying 15% too much tax ? If the Goverment is really concerned with Rip-Off Britain, how can they justify taxing me on the previous Ripped-Off price ?

Am I at liberty to claim the list price of my car is now £15K ?
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Tue 19 Dec 2000 22:15
RE: Company Car Taxation - honestjohn
Dear John,

Why continue to have a company car? The only logical purpose behind the new company car tax regime is to move company drivers out of company cars and into their own cars or personally leased cars. One small thing the competitiion commission did realise was that while Britain had a car market split 70% company cars to 30% private, the private buyer got a lousy deal because he had to support the bulk discounts obtained by by large fleets for company cars.

HJ
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