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Accessories may be supplied with the car when it is first made available to the employee or at some later date. The legislation on accessories is surprisingly complex and it is important to be clear on the different definitions.

As explained at E4.620A and E4.620B, the amounts of the cash equivalent and the modified cash equivalent are calculated using a number of steps. Under Step 2 in each case, the amount to be added to the price of the car in respect of accessories is¹:

1. Ìý

   •ÌýÌýÌýÌý the price of any 'initial extra accessory' if the car has a list price, and

2. Ìý

   •ÌýÌýÌýÌý the price of any 'later accessory' whether the car has a list price or a notional price

Both these terms are defined in the legislation, but they depend upon other definitions. To understand how Step 2 works, it is first necessary to understand what is meant by a 'qualifying accessory', a 'standard accessory' and a 'non-standard accessory'. As to what is meant by 'price' in relation to an accessory, see below.

A