EIM23490 - Car benefit: calculation for petrol car with approved CO2 emissions figure (type P): example

This page illustrates steps 5 and 6 of the method statement in Section 121(1) ITEPA 2003, see EIM23101 and the examples show how to do the calculations explained at EIM23400.

Example 1: Petrol car with approved CO2 emissions figure

The price of the car and accessories (the figure at step 4) is £15,000. The approved CO2 emissions figure is 183g/km .

For years from 2008/09 only, check whether the car is a QUALEC ( EIM23402).

If it is not, round the CO2 emissions figure down to 180 g/km, then look up the appropriate percentage for a petrol-powered car in the ready reckoner at EIM23410.

Finally, make any required adjustments for this type of car (summary at EIM23420 for years to 2005/06 and at EIM23421 for 2006/07 onwards).

2006/07 and 2007/08

The appropriate percentage (the figure at step 5) is 23%. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x 23% = £3,450.

2008/09

The car is not a QUALEC ( EIM23402) because its CO2 emissions figure exceeds the limit at EIM23403.The appropriate percentage (the figure at step 5) is 24%. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x 24% = £3,600.

Example 2: Petrol car with low CO2 emissions

The price of the car and accessories (the figure at step 4) is £15,000. The approved figure of CO2 emissions is 119 g/km.

For years from 2008/09 only, check whether the car is a QUALEC ( EIM23402).

If it is not, round the CO2 emissions figure down to 115 g/km, then look up the appropriate percentage for a petrol-powered car in the ready reckoner at EIM23410.

Finally, make any required adjustments for this type of car (summary at EIM23420 for years to 2005/06 and at EIM23421 for 2006/07 onwards).

2006/07 and 2007/08

The appropriate percentage (the figure at step 5) is 15%, as the CO2 figure is below the lower threshold for the year. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x15% = £2,250.

2008/09

The car is a QUALEC: the unrounded CO2 emissions figure of 119 does not exceed the limit of 120, EIM23403.

The appropriate percentage (the figure at step 5) is 10% ( EIM23402). No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x10% = £1,500.