Coursework - Assignment Example

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Coursework

Starting April 2016, the 3% supplement for diesel cars will be scrapped (Deloitte, 2012). The other important adjustments that have been made include exclusion of certain security enhancement, which will not be considered henceforth, as accessories when estimating the benefit’s corresponding to the cash value in respect to company cars used for private purpose. These adjustments will be put into force from 6 April 2011 and will be applied retrospectively. Private fuel benefit The benefit’s cash equivalent in respect to free fuel offered to employees will increase because the multiplier used to estimate them will be increased from ?18,800 to ?20,200, a change that took effect from April 2012. Furthermore, this multiplier will further increase by 2 percent above the inflation rate, taking effect from 2013 up to 2014. Capital allowances and lease rental restriction There shall be an extension (up to April 2015) of the time through which 100 percent of capital allowances for the initial year are allowed on car expenses. ...Show more

Summary

QUESTION ONE The general changes that are proposed to the taxation of company cars, both for the company and for the employees, for the next few tax years. For all the cars emitting over75b/km of carbon dioxide, the Government has increased a one percentage point on top of what was to be charged in 2013 and before, which will be in force from 2010 to 2015 and whose maximum is 35 percent…
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