ACCA Strategic Professional · Advanced Taxation (UK) · Taxes applicable to a given situation or course of action and their impact
Tobias, an employee, is provided by his employer with a company car that is a plug-in hybrid with CO2 emissions of 40 g/km and an electric range of 75 miles. Which car benefit percentage applies under the ATX-UK tables?
The car benefit percentage is 6%. For hybrid cars emitting 1 to 50 g/km, the electric range decides the rate, and a range of 70 to 129 miles falls in the 6% band. The 9% rate is for ranges of 40 to 69 miles.
- A3%
- B6%Correct
- C9%
- D15%
Explanation
For hybrid-electric cars with emissions of 1 to 50 g/km, the electric range determines the percentage. A range of 70 to 129 miles gives 6%. 9% applies to 40 to 69 miles, so it is wrong here since the range is 75 miles.
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