Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 3: average price of notional car
This page follows from Step 2, described at EIM23840.
STEP 3: Calculate the average price for the notional car in each group
This is achieved using this process:
- take the uncapped price of each car in the group, as determined at Step 1 (EIM23830)
- add these together and divide by the number of cars in the group
- for 2009/10 and 2010/11 only, restrict the result to £80,000 if, exceptionally, this is necessary
- the result is the price for the notional car in that group.
Daily rental businesses will also need to calculate the average price of the cars in their fleet which are available to staff, in accordance with their decision at Step 1 (EIM23830), i.e. the cars counted when the sample is taken or those in their entire fleet which are available to staff, counted nationally or regionally.
Step 4 follows at EIM23850.
2008/09 and earlier years
This guidance applies only for 2009/10 and later years. Local arrangements applied for years to 2008/09 as described at EIM23750 onwards.