EIM24655 | Car benefit calculation Step 5, appropriate percentage, 2012 to 2013 onwards: car with an approved CO2 emissions figure: relevant threshold
From HM Revenue & Customs · Employment Income Manual
Section 139 ITEPA 2003
The relevant threshold applies from 2012 to 2013 only.
The relevant threshold
This page relates to step 5 of the method statement in section 121(1) ITEPA 2003, see EIM24015.
The relevant threshold is the approved C02 emissions figure upon which all calculations of the appropriate percentage are based from 2012 to 2013 onwards.
The relevant threshold has been specified for the following tax years:
| Tax year | Relevant threshold, g/km (generate per kilometre) |
|---|---|
| 2012 to 2013 | 100 |
| 2013 to 2014 | 95 |
Calculating the appropriate percentage from the relevant threshold
The appropriate percentage is calculated as follows:
if the car’s C02 emissions figure is less than the relevant threshold for the year, the appropriate percentage:
| g/km | 2012 to 2013 | 2013 to 2014 | 2014 to 2015 | 2015 to 2016 | 2016 to 2017 |
|---|---|---|---|---|---|
| 0 | 0% | 0% | 0% | 5% | 7% |
| 1 to 50 | 5% | 5% | 5% | 5% | 7% |
| 51 to 75 | 5% | 5% | 5% | 9% | 11% |
| 76 to 94 | 10% | 10% | 11% | 13% | 15% |
If the car’s C02 emissions figure is equal to the relevant threshold for the year, the appropriate percentage is:
| Description | 2012 to 2013 | 2013 to 2014 | 2014 to 2015 | 2015 to 2016 | 2016 to 2017 |
|---|---|---|---|---|---|
| relevant threshold (g/km) | 100 | 95 | 95 | 95 | 95 |
| appropriate percentage | 11% | 11% | 12% | 14% | 16% |
If the car’s C02 emissions figure exceeds the relevant threshold for the year, the appropriate percentage is the lesser of:
the threshold percentage increased by one percent for each 5g/km by which the C02 emissions figure exceeds the relevant threshold for the year
35% (up to 2014 to 2015) and 37% from 2016 to 2017
There is a ready reckoner for the appropriate percentage for a type A car for 2012 to 2013 onwards at EIM24705.
For examples showing the calculation of the car benefit charge for type A cars with approved CO2 emissions figures for 2012 to 2013 onwards, see EIM25060.