Company Car implication if gifted.

[RickJK]

There is a possibility that at the end of the 3yr lease, my company will offer me the vehicle as a gift/incentive/bonus.

I'm sure there's some tax to be paid on this but can somebody please advise me on what.

The vehicles retail value new is £23K, and will have done approx 70,000 miles after the 3yr term. CO2 emission are 171.

All advice welcome..

[Clare@InTouch]

The value of the "gift" would be the value of the asset, and you'd pay tax and NI on that accordingly. Effectively it's taxable as earnings (salary) would be.

[RickJK]

The value of the "gift" would be the value of the asset, and you'd pay tax and NI on that accordingly. Effectively it's taxable as earnings (salary) would be.

Perfect, but would that be the value of the asset after the 3ys with whatever mileage it had on it. ie current market value?

[northernladuk]

Do people not speak to their accountants anymore?

[Clare@InTouch]

Perfect, but would that be the value of the asset after the 3ys with whatever mileage it had on it. ie current market value?

Market value if sold to an unconnected third party. So you personally would be in no better position than if you'd bought the car from a company you had no connection to - otherwise there's benefit in kind issues.

[speling bee]

Value it on what car.

[darrylmg]

Market value if sold to an unconnected third party. So you personally would be in no better position than if you'd bought the car from a company you had no connection to - otherwise there's benefit in kind issues.

Except he knows who's been driving it and how hard.
Nice idea.