For circumstances where the provision of a vehicle is a tax-exempt benefit, see 4.2.
The benefit-in-kind associated with a car is calculated broadly as follows (which necessitates keeping a record of business usage).
Step 1: calculate the value of the vehicle
The first step is to calculate the value for a vehicle purchased by the employer.
If the vehicle was purchased in the year of assessment the value is the open market cost of acquisition.
If the vehicle was purchased before the year of assessment the value is reduced by 20% for each year, on a reducing balance basis, following the year of acquisition but not including the
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