SE23107 - Car benefits: price of the car as regards a year - cars manufactured to run on road fuel gases

Section 168AB(2) and (3) ICTA 1988, Section 60 FA 1998

Before reading the text that follows this paragraph, ensure that you are familiar with

• the general introduction to the calculation of price of a car as regards a year at SE23100
• the flowchart setting out the steps involved in calculating the price of a car as regards a year at SE23100a.

1998/99 to 2001/02

From 6 April 1998 any premium on the price of a car which is manufactured to run on road fuel gases will be disregarded when calculating the price of the car. The amount to be disregarded is the part of the list price which it is reasonable to attribute to the car being manufactured to be capable of running on road fuel gases rather than being manufactured to run only on petrol. Normally, this will mean replacing the price of the car which can run on road fuel gas with the (lower) price of the petrol-only equivalent model.

2002/03 onwards

These rules are modified when the new system for calculating the chargeable car benefit is introduced from 6 April 2002 onwards. From that date, any premium on price will only be disregarded if the car does not have an approved carbon dioxide emissions figure for its performance when running on road fuel gas. See SE23445 onwards for details on what constitutes type B and type C cars.

• If the car is a type B one for car benefit purposes, use its actual price as the basis for calculating the car benefit.
• If the car is a type C one for car benefit purposes, continue to disregard from the price any part of the price which it is reasonable to attribute to the car being manufactured to be capable of running on road fuel gases rather than being manufactured to run only on petrol.

Road fuel gas

This means any substance which is gaseous at a temperature of 15`C and under pressure of 1013.25 millibars, and which is for use as a fuel in road vehicles The two main types of road fuel gas which are currently in use are compressed natural gas (CNG) and liquid petroleum gas (LPG).