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.
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| 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 |
| For both types of car, add the price of accessories. | |
| (stage 1) | Initial extra accessories (type 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 EIM23200 onwards for the calculation in respect of classic cars.
