Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 6Taxable benefits: cars, vans and related benefits
Cars: special cases
147Classic cars: 15 years of age or more
1
This section applies in calculating the cash equivalent of the benefit of a car for a tax year if—
a
the age of the car at the end of the year is 15 years or more,
b
the market value of the car for the year is £15,000 or more, and
c
that market value exceeds the amount carried forward from step 3 of section 121(1).
2
For the amount carried forward from step 3 substitute the market value of the car for the tax year in question less any deductions under subsection (6).
3
The market value of a car for a tax year is the price which the car might reasonably have been expected to fetch on a sale in the open market on—
a
the last day of that year, or
b
the last day in that year on which the car is available to the employee if that is earlier.
4
It is assumed that any qualifying accessories available with the car on that day are included in the sale.
5
Subsection (6) applies if the employee contributes a capital sum to expenditure on the provision of—
a
the car, or
b
any qualifying accessory which is taken into account in determining the market value of the car.
6
A deduction is to be made from the market value of the car—
a
for the tax year in which the contribution is made, and
b
for all subsequent years in which the employee is chargeable to tax in respect of the car by virtue of section 120.
7
The amount of the deduction allowed in any tax year is the lesser of—
a
the total of the capital sums contributed by the employee in that year and any earlier years to expenditure on the provision of—
i
the car, or
ii
any qualifying accessory which is taken into account in determining the market value of the car for the tax year in question, and
b
£5,000.