BIK on Company Classic Cars?

[Davel]

Can anyone tell me how this is calculated now please?

Is it based on the list price new, when manufactured, or the current market value.

Quite fancied a Testarossa but it cost about £80k new and can now be bought for between £28 - £40k.

Ta

Edited by Davel on Tuesday 10th October 20:25

[Graham]

its somthing like if the current purcahse price is less than 15k then its valued at its original price for car tax etc. over 15k then its current value is used.

at least it was when i looked at it, although i cant remember what the age criteria was, and the cut off value may have changed.

G

[BigAlinEmbra]

For your example it would be the market value.
Graham is correct.

[Davel]

Thanks

Is it just the market value or does engine size/emissions come into it?

[Shed_Jensen]

Hi Davel,

I've just purchased a Rover P5B as a classic company car , the IR rules are combinational;

i.e the car has to be over 15 years old and worth under 15,000 quid for the BIK tax to be calculated on the original purchase price.

For mine, the BIK tax works out at about 250 quid a year based on the original price and a 40% taxpayer.

A classic car outside of these rules is taxed on market value, if your Testarossa is worth 40k the BIK is based on this 40k x a percentage laid down by the revenue (based on engine size - not emissions); I'm sure one of the friendly accountants will be along in a minute to confirm.

In the meantime; take a look at these threads for further info / inspiration;

www.pistonheads.com/gassing/topic.asp?t=221910&f=140&h=0

www.pistonheads.com/gassing/topic.asp?t=221685&f=92&h=0

Good luck,

Steve.

Edited by Shed_Jensen on Wednesday 11th October 09:58

[Davel]

Thanks everyone!

[Fast_AL]

The percentage that you multiply the market value by for greater than 2000cc as per the revenue for 05/06 is 32%.

So for example £40,000 x 32% = Benefit of £12,800

This surprised me I thought the percentage was 35%.

Cheers

Al