EIM24105 - Car benefit calculation Step 1, price of the car: list price

Section 123 ITEPA 2003

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

  • the method statement in section 121(1) ITEPA 2003, see EIM24015 (this page concerns step 1)
  • the general introduction at EIM24050
  • the step by step guide can be found at EIM24055
  • when list price is to be used, see EIM24100

List price

This means the price published by the car’s manufacturer, importer or distributor (as the case may be, see EIM24110 in cases of doubt) as the inclusive price appropriate for a car of that kind if sold:

  • in the United Kingdom
  • singly
  • in a retail sale
  • in the open market
  • on the day immediately before the date of the car’s first registration

The inclusive price means the price inclusive of:

  • any charge for delivery by the manufacturer, importer or distributor to the seller’s place of business
  • any relevant taxes (any car tax, any VAT, any customs or excise duty and any tax chargeable as if it were a customs duty)

Where a car first registered in another country is imported into the United Kingdom, the UK list price on the terms above should be ascertained on the day before it was first registered abroad, see EIM24115.

Car tax is tax that 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 that were registered before that date.

Whether “Carbon Offset Charges” should be included in the list price depends on the precise arrangements; see EIM24120.

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

Vehicle Excise Duty (VED, or the tax disc) should also be excluded.

See EIM24450 for an example of how the price of a car is calculated.