EIM23111 - Car benefit: price of the car: step by step guide
Sections 121 to 124 ITEPA 2003
The steps are those in the Section 121(1) ITEPA 2003 method statement, see EIM23101.
| Car with a list price | Car with no list price | ||
|---|---|---|---|
| Step 1 | Find the list price of the car, see EIM23121 onwards. | Find the notional price of the car under Section 124, see EIM23130. | |
| Step 2 (stage 1) | Initial extra accessories (type 1). | For both types of car, add the price of accessories. | |
| (stage 1) | Add these, whether or not they are available with the car in the tax year in question, see EIM23150. | Nothing to add (these accessories are included in the notional price). | |
Note: the price at this stage is normally fixed while the same employee has the car.
|
(stage 2) |
Initial extra accessories (type 2). |
Add these if they remain available with the car in the tax year in question, see EIM23151. |
Nothing to add (these are also included in the notional price). |
|
(stage 3) |
Initial extra accessories (type 3). |
Add these if they remain available with the car in the tax year in question, see EIM23152. |
Nothing to add (these are also included in the notional price). |
Note: the following steps apply to all cars, whether with a list price or a notional price.
|
(stage 4) |
Later accessories. |
Add those available in the tax year in question that were not available with the car before 1 August 1993 and have a price of at least £100, Section 126(3) ITEPA 2003, see EIM23160. |
|
(stage 5) |
Replacement accessories. |
Adjust as required at EIM23170 onwards. |
|
Step 3 |
|
Deduct allowable capital contributions made in the year in question or earlier, see EIM23160 onwards. |
|
Step 4 |
|
The figure carried forward from step 4 is capped at £80,000, see EIM23136. |
Types of initial extra accessory
Type 1: With a list price published by the manufacturer, distributor or importer of the car.
Type 2: With a list price published by the manufacturer, distributor or importer of the accessory.
Type 3: For which a notional price must be used (i.e. for which there is no list price).
Other points
- See EIM23135 about cars manufactured to run on road fuel gas.
- See EIM23182 on the cost of converting a car to run on road fuel gas.
- See EIM23181 regarding equipment for disabled persons.
- See EIM23137 regarding the price of an automatic car for use by a disabled person from 2009/10 onwards.
- See EIM23200 onwards for the calculation in respect of classic cars.
