{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-121",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-121.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "section/121",
  "kind": "section",
  "number": "121",
  "heading": "Method of calculating the cash equivalent of the benefit of a car",
  "text": "(1) The cash equivalent of the benefit of a car for a tax year is calculated as follows—\nStep 1\nFind the price of the car in accordance with sections 122 to 124A.\nStep 2\nAdd the price of any accessories which fall to be taken into account in accordance with sections 125 to 131.\nStep 3\nMake any deduction under section 132 for capital contributions made by the employee to the cost of the car or accessories. The resulting amount is the interim sum.\nStep 4\n...\nStep 5\nFind the appropriate percentage for the car for the year in accordance with sections 133 to 142.\nStep 6\nMultiply the interim sum by the appropriate percentage for the car for the year.\nStep 7\nMake any deduction under section 143 for any periods when the car was unavailable.\nThe resulting amount is the provisional sum.\nStep 8\nMake any deduction from the provisional sum under section 144 in respect of payments by the employee for the private use of the car.\nThe result is the cash equivalent of the benefit of the car for the year.\n(2) The method of calculation set out in subsection (1) is modified in the special cases dealt with in—\nsection 146 (cars that run on road fuel gas), and\nsection 147 (classic cars: 15 years of age or more).\n(3) Where the car is shared the cash equivalent is calculated under this section in accordance with section 148.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 121(1) substituted (with effect in accordance with s. 54(6) of the amending Act) by Finance Act 2009 (c. 10), s. 54(3)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 121(1) inserted (with effect in accordance with Sch. 28 para. 10(2) of the amending Act) by Finance Act 2009 (c. 10), Sch. 28 para. 2(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 121(3) substituted (1.3.2012) by The Enactment of Extra-Statutory Concessions Order 2012 (S.I. 2012/266), arts. 1, 3(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/121",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}