Oracle Finance offer solution to new luxury company car tax legislation
Prestige vehicle finance specialists, Oracle Finance, has launched a new initiative to help company directors and business owners beat the blow of impending tax changes relating to people running a luxury company car.
Announced back in 2009, by the then Labour chancellor Alistair Darling, new legislation will come in to play on April 6th which removes the tax break previously enjoyed on company cars by the removal of the £80,000 cap used to calculate the benefit in kind paid on these vehicles. Applicable if company cars are ever used privately the legislation will mean that vehicle users will see a considerable hit to their pocket as they will be taxed based on the original full list price and will no longer enjoy the benefit of the previous £80k cap.
Oracle Finance today announced a solution to this impending problem that will allow those most affected by the change in law to save thousands of pounds. Their unique service works around Oracle taking the vehicle out of the company and then instantly re-financing the car back to the end user at today’s market value. This means that the car users business or employer can remunerate the individual through other means such as a car allowance or through a mileage scheme thus allowing the end user to enjoy the benefits of their prestige vehicle of choice without the threat of a huge tax bill.
Peter Brook, Managing Director at Oracle, commented: “The new legislation has somewhat crept under the radar but it’s going to prove a real financial problem for anyone with a high value company car. Our new service is geared towards working with the companies tax planners to help reduce the costs associated with these new laws. Directors won’t have to have their hand forced in disposing of their vehicles just because new legislation dictates that tax is based on a high original list price when in reality the car could actually be several years old and actually be worth much less.