SE23134 - Car benefits: price where the optional accessory was fitted before car made available to employee

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.

In either the case of a list price or a notional price of an accessory we are looking at the price on the date when it was first made available for use with the car. That date may be before the car with that accessory was first made available to the employee. If that were not the case, then an employee provided with a second-hand car would be charged to tax on the benefit of that accessory as if it had been new on the date when that employee was first provided with the car, rather than on its price at the earlier date - which would probably be lower.

See example SE23185 for an example of how the price of a car is calculated – including how accessories are taken into account.