BIK rate on 2nd hand car

[mysp00n]

I have an option to buy a second hand BMW i3 which I thought would be great as another car for the company however does anyone know how the BIK/CCT works on a second hand car? The car is on a 14 plate so rather old and not sure it falls into the 0/1% BIK rate? Can't really find anything on a quick google so thought would ask the collective!

Thanks!

 

[LukeUK]

My understanding is that the 20/21 rates will apply, but the list price will apply from when the car was new, and the emissions will be based on NEDC rather than WLTP.

It is specifically the list price of a new car that is used, not the price actually paid for a car/any car/your car.

In situations where the emissions percentage is greater than 0%, this would discourage the use of second hand cars, as you're still paying the BIK on the value of a new car, but as 0% multiplied by any other number is still 0%, it matters a lot less.

This does change slightly after 20/21, as you'll then start paying BIK on 1%, then 2% of the value of a brand new car.

http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

How to work out the benefit of a company car (480: Chapter 12)

Luke

 

[mysp00n]

Cheers Luke. That's how I interpreted it (just needed someone to double check my sanity) it's a 4 year old barely used i3 and its being offered at a very reasonable rate. Even 2% of its P11D it still makes it next to nothing under company ownership and ideal for the little town runs we're wanting it for. I just wasn't sure if there was a 'cars before x date are excluded from this' or something equally as silly as you never know bojo.

 

[LukeUK]

I know what you mean, it does feel like a slight curve-ball, as most BIK conversations are around new cars, either purchased as company cars or leased, but from what I've read, the rules are applied as above. Aside from the emissions assessment (which is academic in your case), I can't find anything else that is related to the age of the car.

 

[davidmc]

I have an option to buy a second hand BMW i3 which I thought would be great as another car for the company however does anyone know how the BIK/CCT works on a second hand car? The car is on a 14 plate so rather old and not sure it falls into the 0/1% BIK rate? Can't really find anything on a quick google so thought would ask the collective!

Thanks!

Have a look here. Select Year, model, date of registration etc
Cars History - BMW i3