Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Car benefit calculation Step 1, price of the car: notional price - particular cars

Section 124 ITEPA 2003

EIM24150 explains the meaning of ‘notional price’ for car benefit purposes.

In exceptional cases, PAYE Technical is prepared to agree a notional price to apply nationally. This facility is only available where the cars are prototypes or are specially imported which will only be offered for lease and not for retail sale (and which therefore do not have a list price).

The prices below do not apply to any production variant which may later be offered for retail sale in the normal way. Those cars will have a list price. Central agreements have only been made in respect of the following cars:

Smart EV (electric vehicle), first registered around 2007

  • car: an electric-only version of the first model of the smart car, identifiable by the figures 450 in the VIN (vehicle identification number)
  • model: the prototype, 100 cars produced in 2007
  • notional price: £13,750

Top of page

Technology Strategy Board’s Ultra Low Carbon Vehicle Demonstrator Competition

Prices have been agreed for the following cars made available under this government programme:

MINI E electric car, first registered in 2009

  • car: an electric-only version of the MINI, identifiable by being first registered in 2009
  • notional price: £14,800 including VAT at 15%

Mitsubishi iMiEV electric car, first registered in 2009

  • car: an initial batch of 25 imported production cars, identifiable by being first registered in 2009
  • notional price: £19,100 including VAT at 15%

Smart ED (electric drive), first registered around 2009 or 2010

  • car: an electric-only version of the second model of the smart car, identifiable by the figures 451 in the VIN
  • model: the prototype, a maximum of 200 cars produced in 2009 and 2010
  • notional price: £14,600 including VAT at 17.5%

Smart ED (electric drive), manufactured from September 2010

  • car: an electric only version of the second model of the smart car, identifiable by the date of manufacture.
  • model: the prototype with some difference in trim colour, a maximum of 85 to be imported
  • notional price: £14,953 including VAT at 20%

Toyota Plug-In Hybrid Prius (PHV)

  • car: a plug-in hybrid derived from the Prius T3
  • model: the prototype, 20 cars first registered in 2010
  • notional price: £22,400, including VAT at 17.5%

The notional price relates to the date the car was first registered, so does not change with later changes to the rate of VAT.