Car benefit: price of
the car
The price of the car is used (with the appropriate percentage) to calculate the amount of the cash equivalent of the car. It is calculated each year, though it only changes if there are changes in or additions to the car's accessories. There is a summary flowchart for all cars at EIM23111.
Cars with a list price
The price of the car for the year is the sum of:
- the list price of the car as published by its manufacturer, importer or distributor (as defined at EIM23100 onwards) on the day immediately before it was first registered.
- all additional accessories (as defined at EIM23140
onwards), including:
- accessories with the car when it is first made available to the employee (EIM23150 explains how to deal with initial extra accessories)
- additional accessories fitted after the car is first made available to the employee (EIM23160 explains how to deal with later accessories)
- replacement accessories (EIM23170 onwards explain how to deal with replacement accessories) whether or not the replacement is superior to the accessory replaced.
Cars without a list price
The price of the car for the year is made up as follows:
- the notional price of the car at the time it is first made available to the employee, including all accessories fitted at that time (EIM23130 explains how to calculate the notional price)
- all changes after the car is first made available to the employee are treated in exactly the same way as if the car had a list price. See above for these.
Meaning of notional price
The notional price of a car or accessory (the notional price of an accessory is defined at EIM23144) only applies when no list price exists.
Special cases
There are special rules for:
- classic cars (those 15 years old or more at the end of the tax year, as defined at EIM23200)
- capital contributions by the employee towards the cost of the car or accessories (as defined at EIM23190 onwards)
- cars with a price of more than £80,000 (after capital contributions are taken into account) (EIM23205 explains how to deal with these)
- cars manufactured (EIM23135 explains how to deal with these) or converted (EIM23182 explains how to deal with these) to run on road fuel gas.
Examples
There are some examples at EIM23210 onwards.
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