SE23430 - Car benefit from 2002/03 onwards: overview of calculation for alternatively fuelled or propelled cars

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

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.

The appropriate percentage is reduced if the car runs on certain alternative fuels and technologies.

• Electric cars – see SE23435.
• Hybrid electric/ petrol cars – see SE23440.
• Road fuel gas vehicles – see SE23445 onwards.

Reductions only apply to cars first registered on 1 January 1998 and later.

There is a table summarising all adjustments to the appropriate percentage because of the fuel used at SE23470.