121Method of calculating the cash equivalent of the benefit of a car
(1)The cash equivalent of the benefit of a car for a tax year is calculated as follows—
Step 1
Find the price of the car in accordance with sections 122 to 124.
Step 2
Add the price of any accessories which fall to be taken into account in accordance with sections 125 to 131.
Step 3
Make any deduction under section 132 for capital contributions made by the employee to the cost of the car or accessories.
Step 4
If the amount carried forward from step 3 exceeds £80,000, the interim sum is £80,000.
In any other case, the interim sum is the amount carried forward from step 3.
Step 5
Find the appropriate percentage for the car for the year in accordance with sections 133 to 142.
Step 6
Multiply the interim sum by the appropriate percentage for the car for the year.
Step 7
Make any deduction under section 143 for any periods when the car was unavailable.
The resulting amount is the provisional sum.
Step 8
Make any deduction from the provisional sum under section 144 in respect of payments by the employee for the private use of the car.
The result is the cash equivalent of the benefit of the car for the year.
(2)The method of calculation set out in subsection (1) is modified in the special cases dealt with in—
section 146 (cars that run on road fuel gas), and
section 147 (classic cars: 15 years of age or more).
(3)The cash equivalent may be reduced under section 148 where the car is shared.