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for a car with 60 gms emission, the formula in kaplan text is:
Basic % – less than 75gms
.. what is the basic %??
thanks in advance
You should not be concerned with the label applied by Kaplan – simply with what is the answer! If you look at the rates and allowances provided to you in the exam you will see that for a petrol car not exceeding 75 gm/km the relevant % is 5%
If you have worked through Chapter 9 Employment Income, page 63 you should be able to answer that question!!
With respect I answered your question in my first reply above – “If you look at the rates and allowances provided to you in the exam you will see that for a petrol car not exceeding 75 gm/km the relevant % is 5%” This is not something that requires understanding as per your latest comment as it is a rule and a rule which you are given in your tax rates and allowances so does not even need to be learned.
In my previous response I directed you to the page in the OT course notes where in example 4 there is an example that actually deals with a car that has 60gm/km (albeit a diesel car and hence a 3% supplement on top of the standard 5%.“not exceeding 75 gm/km” … the key here was i missed/failed to understand the meaning of the phrase “not exceeding” …. which basically means ‘less than or equal to 75″.
that was a failing on my part of the english language.
i have used ot for all my fia papers and could not have reached f6 had john moffat not been around. i deeply respect him and this site because of him. my avg for fia was 83%.
so i like to study hard and ask a lot of dumb questions…..
thank u
hello Sir can kindly assist me on chapter 9 example 4 Lewis was provided with a new diesel powered company car on 6 august 2014 the motor car has a list price of 13500 and an official emission rate of 122grams per kilometre. the taxable benefit is calculated as follows
the emission are above 95g/km so the the relevant percentage is 20% why is it 20% and is their no other formula for car benefit.why is the emission of 122grams per kilometre not included in calculating the answer
The 122 gms/km IS considered in deriving the answer as per the note that precedes the example – “> 95g/km – Add an additional 1% for every complete 5g/km above 95 g/km”
and in the answer itself which shows the calculation of the 20% –
“The CO2 emissions are above 95g/km, so the relevant percentage is 20% (12% + 3%(diesel car) + 5% (1% for every complete 5g/km above 95g/km ie 120-95 = 25 / 5 = 5%).”
Have you listened to the relevant lecture?
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