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(2) The mere fact that the alternative is offered does not result in an amount in | |
respect of the benefit constituting earnings by virtue of Chapter 1 of this Part | |
(earnings). | |
Cars: benefit treated as earnings | |
120 Benefit of car treated as earnings | 5 |
(1) If this Chapter applies to a car in relation to a particular tax year, the cash | |
equivalent of the benefit of the car is to be treated as earnings from the | |
employment for that year. | |
(2) In such a case the employee is referred to in this Chapter as being chargeable | |
to tax in respect of the car in that year. | 10 |
121 Method of calculating the cash equivalent of the benefit of a car | |
(1) The cash equivalent of the benefit of a car for a tax year is calculated as | |
follows— | |
Step 1 | |
Find the price of the car in accordance with sections 122 to 124. | 15 |
Step 2 | |
Add the price of any accessories which fall to be taken into account in | |
accordance with sections 125 to 131. | |
Step 3 | |
Make any deduction under section 132 for capital contributions made by the | 20 |
employee to the cost of the car or accessories. | |
Step 4 | |
If the amount carried forward from step 3 exceeds £80,000, the interim sum is | |
£80,000. | |
In any other case, the interim sum is the amount carried forward from step 3. | 25 |
Step 5 | |
Find the appropriate percentage for the car for the year in accordance with | |
sections 133 to 142. | |
Step 6 | |
Multiply the interim sum by the appropriate percentage for the car for the year. | 30 |
Step 7 | |
Make any deduction under section 143 for any periods when the car was | |
unavailable. | |
The resulting amount is the provisional sum. | |
Step 8 | 35 |
Make any deduction from the provisional sum under section 144 in respect of | |
payments by the employee for the private use of the car. | |
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The result is the cash equivalent of the benefit of the car for the year. | |
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(2) The method of calculation set out in subsection (1) is modified in the special | |
cases dealt with in— | |
section 146 (cars that run on road fuel gas), and | |
section 147 (classic cars: 15 years of age or more). | |
(3) The cash equivalent may be reduced under section 148 where the car is shared. | 5 |
Cars: the price of a car | |
122 The price of the car | |
For the purposes of this Chapter the price of a car means— | |
(a) its list price, if it has one, or | |
(b) its notional price, if it has no list price. | 10 |
123 The list price of a car | |
(1) In this Chapter a car’s “list price” means the price published by the car’s | |
manufacturer, importer or distributor (as the case may be) as the inclusive | |
price appropriate for a car of that kind if sold— | |
(a) in the United Kingdom, | 15 |
(b) singly, | |
(c) in a retail sale, | |
(d) in the open market, and | |
(e) on the day immediately before the date of the car’s first registration. | |
(2) The “inclusive price” means the price inclusive of— | 20 |
(a) any charge for delivery by the manufacturer, importer or distributor to | |
the seller’s place of business, and | |
(b) any relevant taxes (see section 171(1)). | |
124 The notional price of a car with no list price | |
(1) In this Chapter a car’s “notional price” means the price which might reasonably | 25 |
have been expected to be its list price if its manufacturer, importer or | |
distributor (as the case may be) had published a price as the inclusive price | |
appropriate for a sale of a car of the same kind sold— | |
(a) in the United Kingdom, | |
(b) singly, | 30 |
(c) in a retail sale, | |
(d) in the open market, | |
(e) on the day immediately before the date of the car’s first registration, | |
and | |
(f) with accessories equivalent to the qualifying accessories (see section | 35 |
125) available with the car at the time when it was first made available | |
to the employee. | |
(2) In this section “inclusive price” has the same meaning as in section 123. | |
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Cars: treatment of accessories | |
125 Meaning of “accessory” and related terms | |
(1) In this Chapter “qualifying accessory” means an accessory which— | |
(a) is made available for use with the car without any transfer of the | |
property in the accessory, | 5 |
(b) is made available by reason of the employment, and | |
(c) is attached to the car (whether permanently or not). | |
(2) For the purposes of this Chapter “accessory” includes any kind of equipment | |
but does not include— | |
(a) equipment necessarily provided for use in the performance of the | 10 |
duties of the employment; | |
(b) equipment by means of which a car is capable of running on road fuel | |
gas; | |
(c) equipment to enable a disabled person to use a car (see section 172); | |
(d) a mobile telephone (within the meaning given in section 319(2)). | 15 |
(3) But subsection (2)(b) does not apply in relation to a car to which section 137 | |
(different CO2 emissions figure for bi-fuel cars) applies. | |
(4) In this Chapter— | |
“standard accessory” means an accessory equivalent to an accessory | |
assumed to be available with cars of the same kind as the car in | 20 |
question in arriving at the list price, and | |
“non-standard accessory” means any other accessory. | |
126 Amounts taken into account in respect of accessories | |
(1) The price of the following accessories is to be taken into account under step 2 | |
of section 121(1)— | 25 |
(a) in the case of a car with a list price, the price of any initial extra | |
accessory, and | |
(b) in the case of any car, the price of any later accessory. | |
(2) In this Chapter an “initial extra accessory” means a qualifying accessory | |
which— | 30 |
(a) is a non-standard accessory, | |
(b) is available with the car at the time when it is first made available to the | |
employee, and | |
(c) if it is an accessory in relation to which there is no published price of the | |
manufacturer, importer or distributor of the car (see section 128), is | 35 |
available with the car in the tax year in question. | |
(3) In this Chapter a “later accessory” means a qualifying accessory which— | |
(a) is available with the car in the tax year in question, | |
(b) was not available with the car at the time when it was first made | |
available to the employee, | 40 |
(c) was not made available with the car before 1st August 1993, and | |
(d) has a price of at least £100. | |
(4) In this section references to the price of an accessory are to— | |
(a) its list price, if it has one, or | |
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(b) its notional price, if it has no list price. | |
(5) This section is subject to section 131 (replacement accessories). | |
127 The list price of an accessory | |
(1) For the purposes of this Chapter the list price of an initial extra accessory is— | |
(a) the published price of the manufacturer, importer or distributor of the | 5 |
car (see section 128), or | |
(b) if there is no such price, the published price of the manufacturer, | |
importer or distributor of the accessory (see section 129). | |
(2) For the purposes of this Chapter the list price of a later accessory is the | |
published price of the manufacturer, importer or distributor of the accessory | 10 |
(see section 129). | |
128 Accessory: published price of the car manufacturer etc. | |
(1) In this Chapter the “published price of the manufacturer, importer or | |
distributor of the car” in relation to an accessory means the price published by | |
the car’s manufacturer, importer or distributor (as the case may be) as the | 15 |
inclusive price appropriate for an equivalent accessory if sold with a car of the | |
same kind— | |
(a) in the United Kingdom, | |
(b) singly, | |
(c) in a retail sale, | 20 |
(d) in the open market, and | |
(e) on the day immediately before the date of the car’s first registration. | |
(2) The “inclusive price” means the price inclusive of— | |
(a) any charge for delivery by the manufacturer, importer or distributor to | |
the seller’s place of business, | 25 |
(b) any relevant taxes other than car tax (see section 171(1)), and | |
(c) any charge for fitting the accessory. | |
129 Accessory: published price of the accessory manufacturer etc. | |
(1) In this Chapter the “published price of the manufacturer, importer or | |
distributor of the accessory” in relation to an accessory means the price | 30 |
published by or on behalf of the manufacturer, importer or distributor of the | |
accessory (as the case may be) as the inclusive price appropriate for such an | |
accessory if sold— | |
(a) in the United Kingdom, | |
(b) singly, | 35 |
(c) in a retail sale, | |
(d) in the open market, and | |
(e) at the time immediately before the accessory concerned is first made | |
available for use with the car. | |
(2) The “inclusive price” means the price inclusive of— | 40 |
(a) any charge for delivery by the manufacturer, importer or distributor to | |
the seller’s place of business, | |
(b) any relevant taxes other than car tax (see section 171(1)), and | |
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(c) in the case of an accessory permanently attached to the car, the price | |
which the seller would charge for attaching it. | |
(3) In the case of an initial extra accessory, the time referred to in subsection (1)(e) | |
may be a time before the car is first made available to the employee. | |
130 The notional price of an accessory | 5 |
(1) In this Chapter the “notional price” of an accessory means the inclusive price | |
which it might reasonably have been expected to fetch if sold— | |
(a) in the United Kingdom, | |
(b) singly, | |
(c) in a retail sale, | 10 |
(d) in the open market, and | |
(e) at the time immediately before the accessory concerned is first made | |
available for use with the car. | |
(2) The “inclusive price” means the price inclusive of— | |
(a) any charge for delivery by the manufacturer, importer or distributor to | 15 |
the seller’s place of business, | |
(b) any relevant taxes other than car tax (see section 171(1)), and | |
(c) in the case of an accessory permanently attached to the car, the price | |
which the seller would charge for attaching it. | |
(3) In the case of an initial extra accessory, the time referred to in subsection (1)(e) | 20 |
may be a time before the car is first made available to the employee. | |
131 Replacement accessories | |
(1) This section applies where— | |
(a) a later accessory is available with the car in the tax year in question, | |
(b) that accessory (“the new accessory”) replaced another qualifying | 25 |
accessory (“the old accessory”) in that year or an earlier tax year, and | |
(c) the new accessory is of the same kind as the old accessory. | |
(2) If the new accessory is not superior to the old accessory, the cash equivalent of | |
the benefit of the car for the tax year is to be calculated under step 2 of section | |
121(1) as if— | 30 |
(a) the replacement has not been made, and | |
(b) the new accessory is a continuation of the old accessory. | |
(3) If the new accessory is superior to the old accessory and the conditions in | |
subsection (4) are met, the cash equivalent of the benefit of the car for the tax | |
year is to be calculated under step 2 of section 121(1)— | 35 |
(a) as if the old accessory was not available with the car in that tax year, or | |
(b) where the price of the old accessory would (apart from this section) be | |
added to the price of the car under step 2 of section 121(1) as an initial | |
extra accessory, as if it was not available with the car at the time when | |
the car was first made available to the employee. | 40 |
(4) The conditions mentioned in subsection (3) are that— | |
(a) the old accessory was a non-standard accessory, and | |
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(b) both the old and the new accessory would (apart from this section) be | |
taken into account under step 2 of section 121(1) in calculating the cash | |
equivalent of the benefit of the car for the year. | |
(5) For the purposes of this section a new accessory is superior to an old accessory | |
if the price of the new accessory exceeds whichever is the greater of— | 5 |
(a) the price of the old accessory, and | |
(b) the price of an accessory equivalent to the old accessory at the time | |
immediately before the new accessory is first made available for use | |
with the car. | |
(6) In this section references to the price of an accessory are to— | 10 |
(a) its list price, if it has one, or | |
(b) its notional price, if it has no list price. | |
Cars: capital contributions by employee | |
132 Capital contributions by employee | |
(1) This section applies if the employee contributes a capital sum to expenditure | 15 |
on the provision of— | |
(a) the car, or | |
(b) any qualifying accessory which is taken into account in calculating the | |
cash equivalent of the benefit of the car. | |
(2) A deduction is to be made from the amount carried forward from step 2 of | 20 |
section 121(1)— | |
(a) for the tax year in which the contribution is made, and | |
(b) for all subsequent years in which the employee is chargeable to tax in | |
respect of the car by virtue of section 120. | |
(3) The amount of the deduction allowed in any tax year is the lesser of— | 25 |
(a) the total of the capital sums contributed by the employee in that year | |
and any earlier years to expenditure on the provision of— | |
(i) the car, or | |
(ii) any qualifying accessory which is taken into account in | |
calculating the cash equivalent of the benefit of the car for the | 30 |
tax year in question, and | |
(b) £5,000. | |
Cars: the appropriate percentage | |
133 How to determine the “appropriate percentage” | |
(1) The “appropriate percentage” for a car for a year depends upon when the car | 35 |
was first registered. | |
(2) If the car was first registered on or after 1st January 1998, the “appropriate | |
percentage” depends upon whether the car— | |
(a) is a car with a CO2 emissions figure (see section 134(1)), | |
(b) is a car without a CO2 emissions figure (see section 134(2)), or | 40 |
(c) is a diesel car to which section 141 applies, | |
and is determined under sections 139 to 141. | |
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(3) If the car was first registered before 1st January 1998, the “appropriate | |
percentage” is determined under section 142. | |
134 Meaning of car with or without a CO2 emissions figure | |
(1) In this Chapter a “car with a CO2 emissions figure” means— | |
(a) a car first registered on or after 1st January 1998 but before 1st October | 5 |
1999 to which section 135 applies, | |
(b) a car first registered on or after 1st October 1999 to which section 136 | |
applies, or | |
(c) a car first registered on or after 1st January 2000 which is a car to which | |
section 137 (bi-fuel cars) applies. | 10 |
(2) In this Chapter a “car without a CO2 emissions figure” means any other car first | |
registered on or after 1st January 1998. | |
Cars: appropriate percentage: first registered on or after 1st January 1998 | |
135 Car with a CO2 emissions figure: pre-October 1999 registration | |
(1) This section applies to a car first registered on or after 1st January 1998 but | 15 |
before 1st October 1999 if when it was so registered— | |
(a) it conformed to a vehicle type with an EC type-approval certificate (see | |
section 171(1)), or | |
(b) it had a UK approval certificate (see section 171(1)), | |
which specifies a CO2 emissions figure in terms of grams per kilometre driven. | 20 |
(2) The car’s CO2 emissions figure is that specified figure. | |
(3) This is subject to section 138 (automatic car for a disabled employee). | |
136 Car with a CO2 emissions figure: post-September 1999 registration | |
(1) This section applies to a car first registered on or after 1st October 1999 if it is | |
so registered on the basis of— | 25 |
(a) an EC certificate of conformity (see section 171(1)), or | |
(b) a UK approval certificate (see section 171(1)), | |
which specifies a CO2 emissions figure in terms of grams per kilometre driven. | |
(2) The car’s CO2 emissions figure is that specified figure unless more than one | |
figure is specified, in which case the car’s CO2 emissions figure is the figure | 30 |
specified as the CO2 emissions (combined) figure. | |
(3) This is subject to— | |
(a) section 137 (bi-fuel cars), and | |
(b) section 138 (automatic car for a disabled employee). | |
137 Car with a CO2 emissions figure: bi-fuel cars | 35 |
(1) This section applies to a car first registered on or after 1st January 2000 if it is | |
so registered on the basis of— | |
(a) an EC certificate of conformity (see section 171(1)), or | |
(b) a UK approval certificate (see section 171(1)), | |
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