Income Tax (Earnings and Pensions) Act 2003 section 130

The notional price of an accessory

Section 130 defines how to determine the "notional price" of a car accessory when no list price is available, for the purposes of calculating the car benefit charge.

• The notional price is the reasonable expected retail price of the accessory, sold singly in the open UK market, valued immediately before it is first made available for use with the car.
• The price must be inclusive of delivery charges from the manufacturer, importer or distributor, all relevant taxes (except car tax), and any fitting costs if the accessory is permanently attached.
• Where the accessory is an initial extra accessory, the valuation date may fall before the car is first made available to the employee.
• This definition mirrors the conditions used when there is an actual list price, ensuring consistent treatment whether a published price exists or not.