SE23415 - Car benefit from 2002/03 onwards: approved CO2 emissions figure: cases of difficulty

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.

Car first registered 1 March 2001 onwards

There should be few difficulties in identifying the approved CO2 emissions figure for cars first registered in the UK from 1 March 2001onwards as the new car registration document (V5) records the approved CO2 emissions figure - see SE23390. (See SE23400 to SE23410 for guidance on imported cars and more unusual models).

Car first registered 1 January 1998 to 28 February 2001

For cars in this category there will almost always be an approved CO2 emissions figure. But as it is not recorded on the car registration document (form V5) the employer will often have to seek information from one of the sources described at SE23395. This should not normally be a problem provided that the employer has correctly identified the key features of the car in question (model, engine size, fuel type etc - see SE23385).

However, some employers have found what appears to them to be contradictory information on the SMMT and VCA databases about the approved CO2 emissions figure for the same car. The figures should normally be the same. The figures in both databases are collected from the manufacturer. For this reason there is no need for an employer to check both databases once he or she has found the car and model details for a car of the same type. (See SE23385 for details of what constitutes a type of car).

However, if an employer does find an apparent discrepancy:

• ensure that the employer has correctly identified the model/ type details of the car in question
• check that the employer is using an appropriate database. Remember, as the VCA figures relate to new cars currently on sale in the UK, employers will not be able to use the VCA internet database to find the approved CO2 emissions figure for a car sold as new, say, two years ago. (However, the version of the VCA booklet that was current at the time a car was first registered will provide a useful historical record). If after carrying out these checks there is still a small discrepancy, the employer can use the lower CO2 emissions figure to calculate the car benefit charge.
• if, after carrying out these checks there is a large discrepancy, you should obtain full details of the make and model of the car and of the conflicting CO2 emissions figures, and refer to Employment Income Technical for advice.

Car first registered before 1 January 1998

Car benefit is based on engine size and not on approved CO2 emissions figures - see SE23420.