Income Tax (Earnings and Pensions) Act 2003 section 124

The notional price of a car with no list price

Section 124 explains how to determine a "notional price" for a company car when no official list price has been published by the manufacturer, importer or distributor.

• Where no list price exists for a company car, a notional price must be established based on what a reasonable list price would have been
• The notional price assumes a single retail sale in the open market in the United Kingdom, on the day immediately before the car's first registration
• The notional price must take into account accessories equivalent to those available with the car when it was first provided to the employee
• The notional price, like an actual list price, must include delivery charges and any applicable taxes