EIM23480 - Car benefit: car first registered before 1 January 1998

Section 142 ITEPA 2003

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

For all cars first registered before 1 January 1998, the appropriate percentage used to calculate the car benefit charge is based on engine size. This is still the case even if (exceptionally) there is a CO2 emissions figure available for such a car. This is because the European Union rules about measuring and recording CO2 emissions for new cars on sale did not apply before 1 January 1998, so CO2 emissions data is not generally available for cars first registered before that date.

These appropriate percentages apply to all cars first registered before 1 January 1998.

If a car has no cylinder capacity (that is, it does not have an engine size measured in cc) the appropriate percentage is:

• until 2010/11, 15% if the car runs solely on electricity (thereafter, the legislation was repealed. No cars were ever manufactured which met these conditions, so the repeal has no practical effect.)
• 32% otherwise, for example a rotary engine.

Cars powered by diesel or alternative fuels

Remember that reductions and supplements that apply to cars first registered on or after 1 January 1998 do not apply to these cars.

The above appropriate percentages apply to all cars first registered before 1 January 1998.