Prestige Car Drivers To Pay More In BIK Tax

Thursday, 21. April 2011

Image via Wikipedia

One of the smaller changes to the benefit in kind tax rules following the budget was the removal of the upper limit when applied to company run prestige cars. In the past there was a limit placed on the list price used when calculating personal benefit in kind tax of £80,000. This has now been removed so taking a Bentley Flying Spur as an example with a list price of £133,000 the benefit in the past was calculated at £28,000 against which the CO2 emissions banding was applied. With the cap removed this now takes the BIK value up to £46,000 although I must say that clients of mine that drive these sorts of car removed themselves from the company car scheme years ago.

Maybe it was increased to affect those bankers being paid million pound bonuses and being provided with Ferrari company cars! We can but dream! By Graham Hill