SE23420 - Car benefit from 2002/03 onwards: car first registered before 1 January 1998

Paragraph 5F 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.

However, for all cars first registered before 1 January 1998 the appropriate percentage used to calculate the car benefit charge is based on engine size. This is still the case even if there is a CO2 emissions figure available for an older car (this is exceptional). This is because the European Union rules about measuring and recording CO2 emissions for new cars on sale did not apply before 1 January 1998, so CO2 emissions data is not generally available for cars first registered before that date.

Set percentages apply to all cars first registered before 1 January 1998.

The diesel supplement does not apply to cars first registered before 1 January 1998, see SE23365.

Reductions for alternatively fuelled or propelled cars do not apply to cars first registered before 1 January 1998 (see SE23430).

If a car has no cylinder capacity (i.e. an engine size measured in cc) the appropriate percentage will be:

• 15% if the car runs solely on electricity
• 32% otherwise, i.e. rotary engine.