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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: standard accessory, non-standard accessory (definitions)

Section 125 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 2)
  • the general introduction to the treatment of accessories at EIM24200.

Standard accessory

This means an accessory equivalent to an accessory assumed to be available with cars of the same kind as the car in question in arriving at the list price. (This takes into account slight changes or modifications to the specification of particular models of cars that manufacturers may make from time to time but that do not result in changes in their published price lists.)

A standard accessory must therefore be included in the list price of the car. It follows that no addition needs to be made at step 2 of Section 121(1) for standard accessories.

Non-standard accessory

This means any accessory other than a standard accessory. There are two types of non-standard accessory, initial extra and later accessories (see EIM24215). The price of non-standard accessories available with the car in the year will need to be added at step 2 of Section 121(1).