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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Car benefit calculation Step 2, accessories: list price, notional price (definitions)

Sections 126 to 130 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.

Price of an accessory

The amount to be taken into account in respect of an accessory is:

  • its list price, if it has one, or
  • its notional price, if it has no list price.

List price

The list price of an initial extra accessory is:

  • the price published by the manufacturer, importer or distributor of the car as the inclusive price appropriate for an equivalent accessory if sold with a car of the same kind, or
  • if there is no such price, the price published by the manufacturer, importer or distributor of the accessory that is appropriate for such an accessory.

The list price of a later accessory is the published price of the manufacturer, importer or distributor of the accessory.

Notional price

The notional price of an accessory means the inclusive price that it might reasonably have been expected to fetch.

Conditions under which each price is to be determined

See EIM24225.