463.This section identifies the types of accessories for which the prices are added at Step 2 of the calculation in section 121(1) of this Act. The section derives from parts of sections 168A(1), (4), (5), (6) and (7), 168B(1), (2) and (3), and 168C(1), (2) and (4) of ICTA.
464.Section 168A(3) of ICTA (which deals with a car to which only standard accessories were fitted at the time it was first made available to the employee) has not been rewritten. It seems unnecessary given that standard accessories (as defined in section 168A(9)(c)) are necessarily taken into account when ascertaining the list price of the car under section 168A(2). The structure of the new method statement in section 121 is such that, having ascertained the list price of the car under Step 1, Step 2 is only concerned with adding on the price of accessories not included in that price.
465.Subsection (1) states the basic rule and introduces the terms “initial extra accessory” and “later accessory”.
466.Subsection (2) defines “initial extra accessory”.
467.Subsection (3) defines “later accessory”.
468.Subsection (4) identifies the price of the accessory as the list price or, if there is no list price, a notional price. This follows the same approach as for the car in section 122 of this Act.
469.Subsection (5) gives a signpost to a modifying rule that applies when accessories are replaced.