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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
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Car benefit calculation Step 2, accessories: conditions when determining list or notional price (part 2)

Sections 128 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.

There are five conditions that are used when determining the price of an accessory. The first four are common to all accessories and are covered on EIM24225, so that page should be read first. The fifth condition varies, depending on the type of accessory concerned.

For an initial extra accessory with:

  • a list price published by the manufacturer, distributor or importer of the car

    • on the day immediately before the date of the car’s first registration
  • a list price published by the manufacturer, distributor or importer of the accessory

    • at the time immediately before the accessory concerned is first made available for use with the car (this may be a time before the car was first made available to the employee)
  • a notional price

    • at the time immediately before the accessory concerned is first made available for use with the car (this may be a time before the car was first made available to the employee).

For all later accessories:

  • at the time immediately before the accessory concerned is first made available for use with the car.