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Section 122 ITEPA 2003

Before reading the guidance that follows this paragraph, ensure that you are familiar with:

• the method statement in Section 121(1) ITEPA 2003, see EIM24015 (this page concerns step 1)
• the general introduction at EIM24050
• the step by step guide can be found at EIM24055

Price to be used

Section 122 makes it clear that the price of the car means:

• its list price, if it has one, or
• its notional price, if it has no list price

»Ê¹ÚÌåÓýapp normal price is therefore the list price. Only if there is no list price can the notional price be used.

»Ê¹ÚÌåÓýapp list price (or, failing that, the notional price) is used at step 1 of Section 121(1) ITEPA 2003 for the price of the car, unless the car is a classic car, for which different rules are used for steps 1 to 3, see EIM24400.

»Ê¹ÚÌåÓýapp list price of an electric car is to include the cost of the battery (plus VAT) if the battery is sold or quoted for separately.