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ACCA Strategic Professional · Advanced Taxation (UK) · Taxes applicable to a given situation or course of action and their impact

Greta is provided by her employer with a petrol car with CO2 emissions of 55 g/km and list price £30,000. The employer also pays for all private fuel. Which statement is correct using the ATX-UK tables?

Car benefit is £5,100 and fuel benefit is £4,794. At 55 g/km the percentage is 17%, applied to the £30,000 list price and to the £28,200 fuel base figure. No exemption applies, and 16% is only for 51 to 54 g/km.

  1. ACar benefit is £5,100 and car fuel benefit is £4,794Correct
  2. BCar benefit is £5,100 and car fuel benefit is £4,794 but both are exempt as emissions are low
  3. CCar benefit is £4,800 and car fuel benefit is £4,794
  4. DCar benefit is £5,100 and car fuel benefit is £4,900

Explanation

At 55 g/km the percentage is 17%, so car benefit is £30,000 x 17% = £5,100. Fuel benefit is £28,200 x 17% = £4,794. The 16% rate (£4,800) applies only to 51-54 g/km. No exemption applies to petrol cars with these emissions.

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