Implications Of Company Car In A Redundancy Package

Andrew1965_2

I was recently made redundant and received a tax free cash settlement of less than £30k

As part of my severance package I also negotiated to keep my old company car, for the remaining 2 1/2 years of its lease

I now have another job, paying a car-allowance, on which I pay tax at 40%

Can anyone advise if there is a tax laibility on the car. Is it still recognised as a company car even though I no-longer work for the company

Thanks

chexum

I have no idea - maybe this question could be better answered in other parts of the forums, possibly in "Cutting Tax"?

Andrew1965_2

Thanks Chexum.

I have posted in several areas as I was unsure of the correct one

Dave_the_Ginger_Cat

I don't think there are any set rules and think it will depend on your former firm's treatment of the remaining lease payments. There may have been tax set aside or paid by them as part of your severance.

If they continue to report it as a benefit in kind and will give you a P11D then it's taxable, and I think the best port of call would be your former employer and ask them how they plan to report it.