SE23172 - Car benefits: classic cars - market value

Section 168F(3) ICTA 1988

The market value of a car for a year is the price which it might reasonably have been expected to fetch on a sale in the open market on the material day. The valuation must be made on the assumption that all of the qualifying accessories available with the car on the material day are included in the sale. See SE23174 for the meaning of 'material day'.

Market values of classic cars may be found in specialist publications, contemporaneous sale documents or insurance details for the car concerned. If a classic car is bought in a poor state of repair and is restored during the year, then it is the market value of the restored vehicle on the material day which is needed to calculate the car benefit charge and not the cost of the earlier purchase. (This text has been withheld because of exemptions in the Freedom of Information Act 2000).

See example SE23186.