Car benefit: appropriate percentage
The appropriate percentage is used (with the price of the car) to calculate the amount of the cash equivalent of the car.
How is it calculated?
For most cars first registered on or after 1 January 1998, the appropriate
percentage depends on the car's carbon dioxide (CO2) emissions
(see EIM23360 onwards
for guidance on how to find this figure). In addition there are supplements
and reductions based on the type of fuel used.
Categories of car:
- cars first registered on or after 1 January 1998 which have an approved
CO
2emissions figure (the vast majority of cars for which a benefit is chargeable will be in this category) - cars first registered on or after 1 January 1998 which do not have an
approved CO
2emissions figure (these will normally be imported from outside the EU) - all cars first registered before 1 January 1998 (the appropriate percentage for these cars is based on engine size and supplements and reductions do not apply).
Types of fuel
Types of fuel (with the code they are given for convenience on form P46(Car) and elsewhere):
- P = petrol
- D = diesel (not approved to European Standard Euro IV emission standards)
- L = diesel approved to Euro IV emission standards
- E = electricity only
- H = hybrid electric (a car with a petrol engine plus an electric motor capable of propelling the car)
- B = either:
- cars powered solely by road fuel gas, or
- bi-fuel cars first registered on or after 1 January 2000 which
have an approved CO
2emissions figure for gas when first registered
- C = conversions to bi-fuel and all other bi-fuel cars which only had
have an approved CO
2emissions figure for petrol when first registered.
There is a ready reckoner for the basic percentage at EIM23410 and two tables for supplements and reductions, for 2002/03 to 2005/06 at EIM23420 and for 2006/07 onwards at EIM23421. There are some examples from EIM23490.
