EIM23402 - Car benefit: qualifying low emissions cars (QUALECs)

Section 139 ITEPA (as amended by Finance Act 2006)

Years to which this page applies

This page applies from 2008/09 only. It has no relevance to earlier years.

Cars to which this page applies

This page applies to cars of all types except electric only cars within type E. The special rules ( EIM23435) which have applied to such cars since 2002/03, when car benefit adopted the CO2 basis, continue to apply to type E cars.

What is a QUALEC?

A QUALEC is a car first registered on or after 1 January 1998 with a CO2 emissions figure which does not exceed a statutory limit for the tax year. The limits are shown at EIM23403.

Note that the exact CO2 emissions figure is used and that the rounding used elsewhere does not apply when deciding whether or not a car is a QUALEC.

Determining the appropriate percentage for QUALECs

Subject to the adjustments below, the appropriate percentage for QUALECs is 10%.

Adjustments for diesel cars, both type D ( EIM23425) and type L ( EIM23430) apply to QUALECs as they do to other cars.

However, there are no further reductions if the QUALEC uses alternative fuels. So there are no further reductions for cars of type B ( EIM23445), C ( EIM23450), G ( EIM23455) or H ( EIM23440).