Oracle Finance has found a way around a tax penalty introduced this month (April) that hits people running luxury company cars by removing the £80,000 original list price ceiling for benefit in kind calculations.
The change was announced in 2009 by Alistair Darling, then chancellor of the exchequer in the Labour Government. It applies if the car is ever used privately.
Oracle takes the car out of the company and refinances it back to the user at its current market value. A spokesman said: “A business or employer can remunerate the user through a car allowance or mileage scheme, allowing the user to enjoy the benefits of their choice without the threat of a huge tax bill.”
Peter Brook, Oracle Finance managing director, said: “Our new service is geared towards working with a company’s tax planners to help reduce the costs associated with these new laws.”