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HMRC internal manual

Employment Income Manual

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Car benefit calculation Step 6: annual car benefit charge before reductions

Section 121(1) ITEPA 2003

This page relates to step 6 of the method statement in Section 121(1) ITEPA 2003, see EIM24015.

This step is purely arithmetic. It requires that the following figures for the tax year in question be multiplied:

  • the interim sum (the price of the car and accessories: until 2010/11, the figure at step 4; from 2011/12, the figure carried forward from Step 3)
  • the appropriate percentage (the figure at step 5).