Guernsey: Benefits in Kind – Definition of the “cost of car”Wednesday, June 24th, 2009
The Benefits in Kind explanatory guide has been amended to include a new definition of the “cost of car”. It is now defined as:
“the actual gross cost of acquiring the car by the employer without deducting the value of any part exchange but including the cost of all accessories, options and extras (whether fixed or otherwise) or, in the case of a car leased to the employer, the amount which in the opinion of the Director it would have cost the employer, on the basis of the above definition, to buy the car instead.”
The change is that “the value of any part exchange” may no longer be used to reduce the cost of the car. No reason appears to have been given for this adjustment – the Income Tax (Guernsey) (Valuation of Benefits in Kind) Regulations, 2008, which came into force on 1 January 2009, allow the cost of the car to be reduced by any part exchange value.
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