Question 1

Section A: Objective Test

On 6 April 2023, Zenith Ltd provided its marketing director, Tariq, with a new fully electric company car (0g/km CO2 emissions). The car has a list price of £45,000. Zenith Ltd also paid £800 to install a charging point at Tariq's home and provided £400 of electricity to charge the car.

What is Tariq's total taxable benefit in kind for the car and related expenses for the 2023/24 tax year?

Accepted Answer

Calculate the car benefit using the appropriate CO2 percentage for 0g/km. Then determine if charging points and electricity for company cars are taxable.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Adding the cost of the charging point and electricity to the taxable benefit.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 1

More questions from this exam