SE23155 - Car benefits: replacement accessories

Section 168C ICTA 1988, Section 168E ICTA 1988 and SI 1994 No. 777

There are Regulations to deal with replacement accessories. A replacement accessory is an accessory which replaces a qualifying accessory which has been taken into account in the price of the car. The regulations ensure that where an accessory is replaced by an equivalent accessory, there will not then be a benefit charge on both the original and the replacement.

Where the replacing accessory is of the same kind as the replaced accessory and is not superior to it, the price of the car is found under the rules explained at SE23100 onwards as if the replacement had not been made.

Where the replacing accessory replaces an optional accessory and is superior to the replaced accessory, the replaced accessory is ignored and the replacing accessory is taken into account in calculating the price of the car for the year in which the replacement was made and for subsequent years when that accessory is available with the car.

A replacing accessory is superior to the accessory it replaces if the price of the replacing accessory exceeds either

• the price of the replaced accessory, or
• the price of an accessory equivalent to the replaced accessory at the time immediately before the replacement was made.

In practice most accessories are replaced on a like for like basis when a fault occurs or damage is repaired. Superior accessories are most likely in upgrading extras such as in-car entertainment systems.