EIM23200 - Car benefit: classic car: definition

Section 147 ITEPA 2003

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 relates to step 3).

Why the legislation exists

There is special legislation to deal with the benefit of certain classic cars because their list price will be low compared with their current value.

Definition

A classic car is one where:

• the age of the car at the end of the year of assessment is 15 years or more and
• the market value of the car for the year is £15,000 or more and
• that market value exceeds the amount carried forward from step 3 of Section 121(1) ITEPA 2003.

Effect of the section

The market value (see EIM23202) of a classic car, less any allowable capital contributions (see EIM23203) made, replaces the figure that would otherwise be carried forward from step 3 of Section 121(1) ITEPA 2003.

See example EIM23211.