Personal Taxation Petrol and diesel cars

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am a stuck, I cannot work out why, with the Diesel car, which is better for the enviroment has a higher assessable figure then the petrol. Surely it should be the other way round.

What am I doing wrong. Please help

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    No it is correct. 3% is added for diesel cars. Its just the rule that you have to apply.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    yes but surely there will be more tax paid on it, if it was better for the enviroment, shouldn't it be less. I am so confused
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    Thats not something you have to think about to pass this exam. Just remember the rules.

    Paul.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    Thanks Paul. Doesn't make sense though, does it?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    I cant say ive actually thought it through. Im sure there is a valid reason why, just cant think of one off hand. I am sitting PTC in December, if you have any other queries fell free to ask

    Paul
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    I am sitting in December. I was completing a past paper when I came across this problem. I thought having the diesel engine would work out cheaper for the employee, but as far as I can work out, it doesn't appear that way.Unless I have got something very wrong.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    Diesel engines give out high levels of particulates, so aren't that environmentally friendly.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    Rosemary, are you getting mixed up with economical, and environmentally friendly?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    No I am not, Diesel has lower emissions, it says in my book
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    I can understand if it is enviromentally unfriendly, but my book doen't give that impression. osborne books
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    Apparently,

    "Petrol engines are less efficient than diesel engines and therefore contribute more to the depletion of non-renewable resources. They also have higher CO2, CO and HC emissions than diesel. However, petrol engines produce less NOx, SO2 and particulates than diesels."

    Let's face it, this is Government policy we're talking about - don't expect logic!


    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    what really annoys me about the governments view on fuel taxation is that there is no tax relief on biodiesel. My friend has opened up the first strictly biodeisel station in the UK and is still having to charge the same amount of tax as for petrol or non bio deisel. Renewable fuel is the way forward.
    Rant over.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    I dont think its worth wasting time trying to figure this out, you will jsut confuse yourself. Just remember 15% + 1% for every 5 over 140 k/gm's. plus another 3% for diesel. Worry about the environment after the exam.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Taxation Petrol and diesel cars

    With tax, the more you understand, the more you would get confused and the more "why" question you would ask.

    For example, just look at CGT rules. I know the rules (it is complex), but there is no logic on some (eg taper relief)

    just learn the rules and just apply it.

    Hopefully (very wishful thinking) you might be challoner of the exchequer yourself

    Westcastle

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