SE23375 - Car benefit from 2002/03 onwards: calculation for a car with an approved CO2 emissions figure: disabled employees

Paragraph 5A Schedule 6 ICTA 1988, introduced 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.

If all the following conditions are satisfied, the appropriate percentage for a disabled employee who uses an automatic car will be calculated using the approved CO2 emissions of the closest equivalent manual model:

• the car is registered on 1 January 1998 or later and has an approved CO2 emissions figure
• the employee holds a disabled person’s badge (“blue badge”)
• because of his or her disability, the only car that the employee can drive is one with automatic transmission.

The closest equivalent manual model means a car that:

• is first registered at or about the same time as the relevant car, and
• does not have automatic transmission, but otherwise is the closest variant available for the make and model of the relevant car.

In the unusual case where the automatic car driven by the employee has lower CO2 emissions than the nearest equivalent manual model, use the CO2 emissions of the automatic car to calculate the car benefit charge.

See SE23600 and SE23121 for guidance on other aspects of how the car benefit charge may be adapted for disabled employees.