EIM23498 - Car benefit: calculation for 2011/12 onwards: all cars except types E and D (electric-only and diesel) - type A: example

This page illustrates steps 5 and 6 of the method statement in Section 121(1) ITEPA 2003, see EIM23101 and the example shows how to do the calculations explained at EIM23465.

Example 1: Type A car with approved CO2 emissions figure 

The price of the car and accessories (the figure at step 3) is £15,000. The approved CO2 emissions figure is 183g/km .

First, 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 type A car in the ready reckoner at EIM23411.

No adjustments are required for this type of car.

2011/12

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 26%. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x 26% = £3,900.

Example 2: Petrol car with low CO2 emissions

The price of the car and accessories (the figure at step 3) is £15,000. The approved figure of CO2 emissions is 119 g/km.

First, 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 type A car in the ready reckoner at EIM23411.

No adjustments are required for this type of car.

2011/12

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.