EIM23491 - Car benefit: calculation for diesel car with approved CO2 emissions figure (type D): 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 EIM23425. They do not apply to diesel cars approved to Euro IV/Euro 4 limits, which are type L (example at EIM23495).
Example 1: Diesel car (non-Euro IV) with a low approved CO2 emissions figure
The price of the car and accessories (the figure at step 4) is
£15,000. The approved figure of CO2 emissions is 119g/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 at in the ready reckoner at
EIM23410.
Finally, make any required adjustments for this type of car
(summary at
EIM23420 for 2002/03 to 2005/06 and
EIM23421 for 2006/07 onwards).
2006/07 and 2007/08
The appropriate percentage from the ready reckoner is 15% (CO2 is below the lower threshold for the year). Add 3% diesel supplement. The appropriate percentage (the figure at step 5) is therefore 15% + 3% =18%. The basic car benefit charge (the figure at step 6) is £15,000 x 18% = £2,700.
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). Add the 3% diesel supplement
(
EIM23421). The basic car benefit charge
(the figure at step 6) is £15,000 x 13% = £1,950.
Example 2: Diesel car with a high approved CO2 emissions figure
The price of the car and accessories (the figure at step 4) is
£20,000. The approved figure of CO2 emissions is 232g/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 230g/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 2002/03 to 2005/06 and
EIM23421 for 2006/07 onwards).
2006/07 and 2007/08
The appropriate percentage from the ready reckoner is 32%. Add 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage (the figure at step 5) is therefore 32% + 3% = 35%. The basic car benefit charge (the figure at step 6) is £20,000 x 35% = £7,000.
2008/09
The car is not a QUALEC, so the appropriate percentage from the ready reckoner is 34%. Add 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage (the figure at step 5) is therefore 34% + 1% (restricted) = 35%. The basic car benefit charge (the figure at step 6) is £20,000 x 35% = £7,000.
Euro IV diesels
For examples on diesel cars approved to Euro IV limits (fuel type L) see EIM23495.
