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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: exceptions: equipment for disabled persons

Sections 125(2)(b) and 172 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.

Equipment disregarded whether or not the person holds a disabled person’s badge

Accessory does not include equipment that is designed solely for use by a chronically sick or disabled person.

Equipment disregarded only if the person holds a disabled person’s badge

Accessory also does not include equipment:

  • that is included in a car made available to an employee who holds a disabled person’s badge when the car is first made available to them and 
  • that is made available for use with the car because it enables that disabled employee to use the car in spite of the disability that entitles them to hold the badge.


All of the above are disregarded at step 2.

Other adjustments to the car benefit provisions for disabled drivers

See EIM23650.