Income Tax (Earnings and Pensions) Act 2003 section 122

The price of the car

Section 122 defines what is meant by "the price of the car" for the purpose of calculating the taxable benefit of a company car.

• The price of a car is its published list price, if one exists.
• If no list price exists, a notional price is used instead.
• The list price and notional price concepts feed into the wider calculation of the cash equivalent of the car benefit.
• A special rule applies where the car is an automatic vehicle provided for a disabled employee, as set out in section 124A.