Commentary on Sections Example 3 £150(Pe) – £50(E) = £100 Section 131: Replacement accessories
486.This section sets out the rules for calculating the cash equivalent of a replacement accessory. The section derives from the Income Tax (Car Benefits) (Replacement Accessories) Regulations 1994 (SI 1994 No 777). Those Regulations were made under powers provided by section 168E of ICTA. As there is no longer any reason to retain those powers, section 168E has not been rewritten.
487.Subsection (1) states when the section applies.
488.Subsection (2) applies when the new accessory is not superior to the old accessory.
489.Subsection (3) applies when the new accessory is superior to the old accessory and the conditions in subsection (4) are met.
490.Subsection (4) states the conditions referred to in subsection (3).
491.Subsection (5) states what is meant by “superior” in this section.
492.Subsection (6) states what is meant by the “price of an accessory” in this section.