EIM24550 | Car benefit calculation: step 5: appropriate percentage: 2002 to 2003 onwards: car with an approved CO2 emissions figure: overview

Section 139 ITEPA 2003

This page relates to step 5 of the method statement in section 121(1) ITEPA 2003, see EIM24015.

Two distinct categories of rules govern the appropriate percentage for cars first registered on or after 1 January 1998 which have a CO2 emissions figure:

• special rules for low emission cars, and

• rules for all other cars.

Special rules for low emission cars

These vary for different years.

Rules for all other cars

The appropriate percentage for a car first registered on or after 1 January 1998 that has an approved CO2 emissions figure and is not a low emissions car is calculated from the threshold set for each tax year.

The differences between the two are made clear on the above pages.

Cars powered by diesel and alternative fuels

The appropriate percentage for a petrol-powered car is used unless the car falls within one of the categories for which adjustments are required.

Adjustments normally need to be made to the appropriate percentage if a car runs on diesel or alternative fuels (though the alternative fuel reductions do not apply to QUALECs, see EIM24605). There’s a summary of these adjustments at the following guidance.

Full details are on succeeding pages.