SE23103 – Car benefits: price of the car as regards a year - meaning of "inclusive price"

Section 168A(9)(a) ICTA 1988

Before reading the text that follows this paragraph, ensure that you are familiar with

• the general introduction to the calculation of price of a car as regards a year at SE23100
• the flowchart setting out the steps involved in calculating the price of a car as regards a year at SE23100a.

The inclusive price of a car is the published price which includes

• any charge published for delivery by the manufacturer, importer or distributor to the seller's place of business, and
• any relevant tax in respect of the published price.

“Relevant tax” means any customs or excise duty, any tax chargeable as if it were a duty of customs, any value added tax and any car tax.

“Car tax” is tax which was charged under the Car Tax Act 1983. That tax ceased to apply for new cars first registered after 12 November 1992 but must still be included in calculating the inclusive price of company cars which were registered before that date.

The £25 new car registration fee which was introduced in April 1998 is an administration fee and not a tax, so is not included in the price of the car.