The Income Tax (Car Benefits) (Replacement Accessories) Regulations 1994

Cases where replacing accessory superior to replaced accessory

4.—(1) This regulation applies in any case where—

(a) a qualifying accessory to which section 168C applies is available with a car which is made available to an employee in any year (“the relevant year”),

(b) the accessory (“the replacing accessory”) replaces (whether in the relevant year or earlier) another qualifying accessory (“the replaced accessory”) which—

(i) was an optional accessory, and

(ii) was not a qualifying accessory available with a car with no list price at the time when the car was first made available to the employee,

(c) the replacing accessory—

(i) is of the same kind as the replaced accessory, and

(ii) is superior to the replaced accessory, and

(d) both the replacing accessory and the replaced accessory would, but for paragraph (2) below, be taken into account under the provisions contained in sections 168A to 168C in determining the price of the car as regards the relevant year.

(2) Where this regulation applies, sections 168A to 168D shall apply in determining the price of the car for the relevant year—

(a) as if the replaced accessory was not available with the car in that year, and

(b) where the price of the replaced accessory was included in the list price of the car under subsections (4) and (5) of section 168A, as if the replaced accessory had not been available with the car at the time when the car was first made available to the employee.