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contract purchase

Why choose contract purchase?
- Establish the list price of your car including extras, but excluding road fund licence and first registration fee
- Find out the CO2 emission of your car – the full list of emissions are further down this page
- Multiply the list price as in (1) by the percentage CO2 emission of your car e.g. List price of £10,000 x 25% emission = £2,500.00
- Multiply the result by the rate of income tax that you pay, e.g. 22%. Therefore, £2,500.00 x 22% = £550.00
- This is the personal tax that you would pay in a full year, equating to £45.83 per month
“Benefit in Kind” Tax System effective April 2002
The table below shows the percentage of the P11d value of the car that is to be used relative to the CO2 emissions of petrol engine cars – a 3%
surcharge needs to be added for diesel engine cars.
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