SE23380 - Car benefit from 2002/03 onwards: approved CO2 emissions figure to appropriate percentage, ready reckoner

Paragraph 3 Schedule 6 ICTA 1988, Paragraph 4 Schedule 6 ICTA 1988 as amended by Section 59 and Schedule 11 FA 2000

From 6 April 2002, the car benefit charge is calculated by multiplying the 'price of the car' by the 'appropriate percentage' based on the car's carbon dioxide (CO2) emissions.

This table shows the lower thresholds of CO2 emissions for the minimum 15% car benefit charge for the first three years of the new system and the appropriate percentages to use in working out the car benefit charge for each band of CO2 emissions.

Note: The exact CO2 figure is always rounded down to the nearest 5 grams per kilometre (g/km). For example, CO2 emissions of 188g/km are treated as 185g/km.

Diesel supplements (only for cars not approved to Euro IV standard, see SE23365)

* add 3% if the car runs solely on diesel

** add 2% if the car runs solely on diesel

*** add 1% if the car runs solely on diesel

**** maximum charge so no diesel supplement.

For details of how the table is used in calculating the car benefit charge see example SE23490 onwards.

The appropriate percentage arrived at from this table is subject to other adjustments for alternative fuels. There is a summary table of these adjustments at SE23470.

For later years see the Employment Income Manual. There is a table of appropriate percentages for petrol-powered cars at EIM23410 and a summary of all adjustments at EIM23420.