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Benefits Code II: Not Low Paid Employees |
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car will have to be increased to take account of the list price of fitted accessories as set by the manufacturer or distributor where this is available—including VAT, delivery and fitting charges.116 Where a list price is not available a notional price is used.117 Accessories for conversion for use by a chronically sick or disabled person are ignored.118 |
17A.4.1.6.2 Later Accessories Where an accessory is made available to E after the car is first made available,119 the list price of accessories over £100 (including VAT, fitting and delivery) and fitted after 31 July 1993 will be included in the price of the car as regards the year in which they are fitted and all subsequent years. The removal of the accessory does not seem to have been contemplated by the legislation although the replacement of an accessory is to be covered by Treasury regulations; one wonders whether a removal can be equated with replacement by nothing. The £100 figure may be raised by Treasury regulation. |
17A.4.1.6.3 Capital Contribution by E If E makes a capital contribution to the provision of the car or accessory, the sum reduces the price of the car—not the cash equivalent. A maximum of £5,000 may be taken into account, although this sum may be raised by Treasury regulation.120 |
17A.4.1.6.4 Classic Cars Special rules apply where the value of the car exceeds £15,000 and is higher than the manufacturer’s list price when it was first registered, ie its price for the year. The car must be more than 15 years old at the end of the tax year.121 In such circumstances the cash equivalent is calculated by applying the relevant percentage to the open market value of the car (and accessories) at the end of the tax year or, if different, the last day on which it was available to the employee.122 |