car benefit calculation - F6 UK Sep 15 Sample Section B Q5

EElle8y ago

Hi All, Please could you help me understand the car benefit calculation? Q. Throughout the tax year 2014–15, Rope plc provided Delilah with a petrol powered motor car which has a list price of £67,200, and an official CO2 emission rate of 207 grams per kilometre. A. The relevant percentage for the car benefit is 34% (12% + 22% (205 – 95 = 110/5)). I understand that up to 95g/km = 12% (given in the supplementary tax rates area). But I do not understand why 205 is used instead of 207 and why we divide the 110 by 5? Thank you,

CChris8y ago#1

The tax percentage increases by 1% for every extra 5g/km over 95g/km. This is rounded down to the nearest percentage point. Therefore we use 205 instead of 207, and it's divided by 5 to get the number of extra percentage points to add on.

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