EIM23400 - Car benefit: car with an approved CO2 emissions figure: overview

Section 139 ITEPA 2003

This page relates to step 5 of the method statement in Section 121(1) ITEPA 2003, see EIM23101.

Qualifying low emissions cars (QUALECs) – from 2008/09 only

From 2008/09, cars with low emissions which were first registered on or after 1 January 1998 qualify for a low appropriate percentage. Full details of how this operates are at EIM23402 and the emissions figure for each tax year at EIM23403.

Relevance of the lower threshold

The appropriate percentage for a car first registered on or after 1 January 1998 that has an approved CO2 emissions figure is calculated from the lower threshold. This is set for each tax year, see EIM23405 for details.

Cars powered by petrol

The appropriate percentage is calculated as follows:

• if the car’s CO2 emissions figure does not exceed the lower threshold for the year, the appropriate percentage is 15% (the basic percentage)
• if the car’s CO2 emissions figure exceeds the lower threshold for the year, the appropriate percentage is whichever is the lesser of:

There is a ready reckoner at EIM23410 that shows the appropriate percentage for each level of CO2 emission for a petrol-powered car for the above years. Note that it has been redesigned for this manual.

For examples showing the calculation of the car benefit charge for petrol cars with approved CO2 emissions figures, see EIM23490.

Cars powered by diesel and alternative fuels

The appropriate percentage for a petrol-powered car is used unless the car falls within one of the categories for which adjustments are required.

Adjustments normally need to be made to the appropriate percentage if a car runs on diesel or alternative fuels (though the alternative fuel reductions do not apply to QUALECs, see EIM23402). There is a summary of these adjustments at

• EIM23420 for years from 2002/03 to 2005/06, and
• EIM23421 for years from 2006/07.

Full details are on succeeding pages.