What is the published price of the car manufacturer under section 128 of the Income Tax (Earnings and Pensions) Act 2003?

The published price is the retail price advertised by the car's manufacturer, importer or distributor for an equivalent accessory sold with the same kind of car in the United Kingdom. It is valued as at the day immediately before the car's first registration and must reflect a single retail item sold in the open market.

What does the inclusive price of a car accessory cover under section 128?

The inclusive price covers delivery charges from the manufacturer, importer or distributor to the seller's premises, any applicable taxes excluding car tax as defined in section 171(1), and any charges for fitting the accessory to the car. This ensures the value used for tax purposes reflects the full cost a buyer would face.

Is car tax included in the published price of a car accessory under section 128?

No, car tax is specifically excluded from the inclusive price of a car accessory under section 128. While the published price includes delivery charges, fitting costs and other applicable taxes, car tax as defined in section 171(1) of the Income Tax (Earnings and Pensions) Act 2003 is not factored into the accessory's published price.

How is the date for the published price of a car accessory determined under section 128?

The relevant date for the published price is the day immediately before the car was first registered. For example, if a company car was first registered on 6 April 2024, the published price of the accessory would be determined as at 5 April 2024. This date anchors the valuation to a specific point in time for benefit-in-kind calculations.

Income Tax (Earnings and Pensions) Act 2003 section 128

Accessory: published price of the car manufacturer etc.

Section 128 defines how to determine the price of a car accessory when that price is based on the published price of the car's manufacturer, importer or distributor.

The published price is the retail price advertised by the car's manufacturer, importer or distributor for an equivalent accessory sold with the same kind of car in the UK, valued as at the day before the car's first registration.
The price must reflect a single item sold at retail in the open market, not a bulk or wholesale transaction.
The inclusive price covers delivery charges to the seller's premises, any applicable taxes (excluding car tax) and any charges for fitting the accessory.
Car tax is specifically excluded from the taxes factored into the inclusive price of the accessory.

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