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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Car benefit calculation Steps 1-4, classic car: capital contributions

Section 147(5) to (7) 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 steps 1-4)
  • the definition of a classic car at EIM24400.

Capital contributions

The rules for classic cars in Section 147 exactly mirror those that apply to all other cars in Section 132 ITEPA 2003. The same effective words are used in both Sections. Guidance can be found as follows:

  • capital contribution is defined at EIM24350 
  • amounts qualifying for deduction are specified at EIM24355 
  • the years for which a deduction is allowed are specified at EIM24360.