Price
When the price of a company car is being assessed for tax purposes it will usually take into account a total of the following:
- the manufacturer's, importer's or distributor's list price of the car on the day prior to its date of registration
- any taxes that are applicable such as VAT or car tax - but not vehicle excise duty (road tax)
- delivery charges (including VAT)
- the list price of any accessory fitted before the car was first made available to the employee, including VAT, delivery and fitting charges
- the list price of any accessory or set of accessories (eg. alloy wheels) over £100 (including VAT, fitting and delivery) fitted after the car was first made available to the employee. Accessories fitted after the car was made available increase the price for the tax year in which they were fitted and subsequent years (the tax year runs from 6 April in one year to 5 April in the next).
There are individual rules for :
- 'classic cars'
- cars without a list price
There is an upper limit of £80,000 on the price of a car (including accessories) for tax purposes. Where the price of a car exceeds this figure, its price for tax purposes will be £80,000.