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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: later accessory

Section 126(1)(b) 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 
  • the definition of later accessory at EIM24215 (note that the accessory must not be available with the car at the time when it is first made available to the employee, if it is, it is an initial extra accessory, see EIM24235 onwards).

Accessories dealt with on this page

All later accessories are dealt with on this page.

Amount to be added at step 2 of Section 121(1) ITEPA 2003

The amount to be added is the price of the accessory as determined under the conditions at EIM24225.

Years for which the amount is to be added

The amount is to be added for all years (including part years) in which the accessory is available to the employee with the car.

If the accessory is removed from the car without replacement, the amount is added in full for that year but not for any future year in which the accessory is never available.

If the accessory is replaced, see the special rules at EIM24255 onwards.