Methley Ltd:
– Is a UK resident trading company which is a close company

Chris:
– Is employed by Methley Ltd and owns 10% of its ordinary shares.
– Has been offered the sole use of a company motor car or, alternatively, a loan to enable him to purchase the
same motor car himself.
– Is a higher rate taxpayer

Chris – alternative 1 – company motor car:
– Methley Ltd would purchase the motor car on 1 October 2016 for £9,600, which is £800 less than the list price.
– The motor car would immediately be made available to Chris exclusively for his private use.
– The motor car has CO2 emissions of 108 grams per kilometre and is diesel powered.
– Chris would contribute £700 per year towards the private use of the motor car.
– Methley Ltd would give the motor car to Chris after three years, when its market value is expected to be £6,300

Required
Calculate Chris's Benefit in respect of the company motor car