Car List Price - leasing company

Car List Price - leasing company

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I am currently preparing our P11D forms and have noticed that the car benefit we have histrocially calculated has been based on the MRP as provided by the leasing company we use, which I assume is fine.

However, when I've checked this against Glass' guide the MRP provided is actually lower than than the Glass' list price by the delivery fee (approx £500).

As all our cars come from a leasing company are we ok to use the lower value that excludes the delivery fee? I'm not aware of any different rules and so want to check the correct position, particularly given the number of leased company cars we have!
Mike

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By alanlowrey.hotmail.co.uk
16th May 2008 12:13

Use Glass's figure
Section 123 ITEPA states that the "list price" to be used is an "inclusive price" as published by the car's manufacturer, importer or distributor appropriate for a car of that kind if sold:

a) in the UK;
b) singly;
c) in a retail sale;
d) in the open market; and
e) on the day immediately before the date of the car's registration.

The inclusive price is defined as a price "inclusive of any charge for delivery by the manufacturer, importer or distributor to the seller's place of business".

In this case, it is possible that the leasing company has been able to negotiate a bulk discount such that it doesn't pay any delivery charges. However, since the legislation tells us to consider the price of the car if sold "singly", I think we have to disregard any such discounts for P11D reporting purposes..

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