The Income Tax (Car Benefits) (Replacement Accessories) Regulations 1994
For the year 1994-95 and subsequent years of assessment, tax on the benefit of a car made available to an employee is to be based on the price of the car in any year. The price of a car in a year is essentially the price of the car including certain accessories (sections 168A to 168E of the Income and Corporation Taxes Act 1988 (“the 1988 Act”), inserted by paragraph 4 of Schedule 3 to the Finance Act 1993). Section 168E of the 1988 Act enables the Treasury to make regulations dealing with cases where one accessory is replaced by another accessory, and provides that the regulations may make different provisions for different cases. The present Regulations accordingly make provision for certain cases involving replacement accessories.