EIM23205 - Car benefit: price cap for expensive cars

Section 121(1) ITEPA 2003

Step 4

Before reading the guidance that follows this paragraph, ensure that you are familiar with the method statement in Section 121(1) ITEPA 2003, see EIM23101 (this page concerns step 4).

The price of a car carried forward from step 3 of Section 121(1) is restricted to an upper limit of £80,000.

Because of its place in the calculation, it can be seen that this figure applies after the appropriate deduction of any capital contribution and is the same for all cars, classic or otherwise.