Thank you for your questions
If you pay for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.
As far as car benefit goes, provided there is any private use, then BIK percentage would be applicable in full.
If the property is question was your only and main residence before you moved out into a rented property, then your capital gain will be covered by the reliefs as follows:
- private residence relief for all period the property remained your main residence
- final 18 months of ownership as the property was your main residence at some point during period of ownership
- letting relief available for the period property let
More information on private residence relief is covered here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Thank you for your reply.
If you agree with your employer the private use element of car use and say it is 15% of total mileage, then paying back to your employer 15% of the fuel costs would negate tax on fuel benefit.
Break down of private residence relief -
Main residence say Dec 2011-Nov 2014 = 36 months
moved out and rented say Dec 2014 to Jul 2016 = 19 months
Period of ownership (36+19) =55 months
Gain on sale £50,000
Period of ownership - months 55
Period as main residence - months 36
Additional relief - 18 months
Private residence relief - months 54
(there is an additional relief to cover last 18 mths
of ownership (HS283 - example 9 )
Potential capital gain £50,000
Gain covered by private residence relief
54/55) x 50,000 £49,091
Gain subject to capital gains tax (50,000-49,091) £909
Letting relief - maximum £909
This is lower of
- £40,000 per owner £40,000
- Private residence relief £49,091
- Gain on the part of the property that's been let £909
Net chargeable gain after letting relief £0
I hope this is helpful
If my example is unclear, I will be happy to carry out CGT calculation based on your dates.
HI there, just checking to see if you need further clarification or have points raised by you not addressed in my responses.