Introduction Background Note
5.The cash equivalent of the taxable benefit of a company car made available for private use is calculated on the basis of (list price + cost of accessories) x (the appropriate percentage (normally based on CO2 engine emissions)).
6.Because of the nature of their employment, a number of individuals in both the public and private sectors are provided with company cars that have been modified to accept security enhancements such as bullet proofed glass and armour plating.  These are currently regarded as accessories for tax purposes and the value of the enhancements falls within the computation of the cash equivalent of the benefit.  This may significantly add to the level of taxable benefit resulting in a disproportionate tax liability for some individuals.
7.Prior to 6 April 2011, there was an £80,000 limit on the list price and accessories calculation for the cash equivalent of the taxable benefit.  This covered most security enhanced cars.