SE23490 - Car benefit from 2002/03 onwards: calculation for petrol cars with approved CO2 emissions figures (fuel type P): example

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.

These examples show how to do the calculations explained at SE23360.

In each of the following examples the basic car benefit charge may be reduced if the employee has to pay for private use of the car ( SE23530 onwards) or if the car is unavailable for part of the year ( SE23500 onwards).

Example 1: Petrol car with approved CO2 emissions figure

• Price of the car is £15,000.
• Approved figure of CO2 emissions is 183g/km.
• Round 183 down to 180.
• Look up the appropriate percentage for 180g/km CO2 in the ready reckoner at SE23380.

2002/03

• Appropriate percentage is 18%.
• Basic car benefit charge is £15,000 x 18% = £2,700.

2003/04

• Appropriate percentage is 20%.
• Basic car benefit charge is £15,000 x 20% = £3,000.

2004/05

• Appropriate percentage is 22%.
• Basic car benefit charge is £15,000 x 22% = £3,300

Example 2: Petrol car with low CO2 emissions

• Price of the car for tax purposes is £15,000.
• Approved figure of CO2 emissions is 158g/km.
• Round 158 down to 155.
• Look up the percentage of the car’s price to be taxed for 155g/km CO2 in the ready reckoner at SE23380

2002/03

• Appropriate percentage is 15% as the CO2 figure is below the 165g/km lower threshold for that year.
• Basic car benefit charge is £15,000 x 15% = £2,250.

2003/04

• Appropriate percentage is again 15%, as the CO2 figure is the same as the lower threshold for that year.
• Basic car benefit charge is £15,000 x15% = £2,250.

2004/05

• Appropriate percentage is 17%, as the CO2 figure is above the lower threshold.
• Basic car benefit charge is £15,000 x17% = £2,550