SE23455 - Car benefit from 2002/03 onwards: road fuel gas vehicles first registered from 1 January 2000 onwards and with approved gas CO2 emissions figure: how to calculate the benefit

Section 168AB(4) ICTA 1988, Paragraph 5 Schedule 6 ICTA 1988 as amended by Section 59 and Schedule 11 FA 2000, Regulation 6 of The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001, SI 2001 No. 1123

The reductions described on this page only apply to those road fuel gas or LPG cars that count as type B. See SE23445 and SE23450 for details of how to identify these cars.

The tax charge will be calculated using the appropriate percentage calculated from the CO2 emissions figure when the car runs on LPG. (This is almost invariably lower than the CO2 emissions figure when the car runs on petrol).

That percentage will then be adjusted as follows

Reduction

• 1%

plus

• an additional 1% for each full 20g/km that the CO2 emissions figure is below the lower threshold for the year.

See example SE23493.

Important: note that for type B cars, no adjustment is made to the price of the car in respect of it being manufactured or converted to run on LPG. See SE23107 and SE23122.