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Taxation - Essay Example

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Masters
Essay
Finance & Accounting
Pages 5 (1255 words)

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Name…………………………………………………………………………….xxxxxx Institution……………………………………………………………………….xxxxxx Course……………………………………………………………………………xxxxx Professor………………………………………………………………………….xxxxx @2012 Taxation Q 1.1 General changes proposed for taxation of the company cars, for the company and for employees, for the next few tax years…

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Taxation

Back in 2002, the government introduced new reforms on company cars. The company car tax reform encourages people to buy of choose cars with lower levels of carbon dioxide (CO2) emissions. Purposely, the reforms are aimed at tackling changes in climate and greenhouse gas emissions. Also, it also encourages manufacturers to introduce greener cars. As a result, businesses should evaluate their current fleet arrangements and especially those that emit carbon in order to minimize costs. The Government also aims at increasing its revenue (Melville 2012). It has already estimated additional cumulative tax revenue of c?3bn over five years if changes come to effect. The changes will affect three categories of people. To begin with, employers purchasing or leasing cars that are made available to their staffs for business and personal use. Then, employees provided for with a company car and fuel for private use. Changes on cars with private fuel benefits took effect as from April 2012 while changes on capital allowance and lease rental restriction consequences will take effect from April 2013 a. ...
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