EIM24730 | Car benefit calculation Step 5, appropriate percentage, 2011 to 2012 onwards: adjustments to appropriate percentage and code letters used for different fuels

From HM Revenue & Customs · Employment Income Manual

From tax year 2011 to 2012, the arrangements regarding different fuels are significantly simplified:

the diesel supplement applies to all diesel-powered cars except, for tax years 2018 to 2019 onwards diesel cars that meet the Real Driving Emission 2 (RDE2) standard are exempt (see note 3 below)
all ‘alternative fuel’ reductions cease to be available (though the 6% reduction given to type E cars in secondary legislation until tax year 2009 to 2010 is incorporated into primary legislation). See EIM24850 for more on type E cars from tax year 2011 to 2012.

The code letters used to describe the various types of car are also simplified, as the following table illustrates.

Type of fuel	P11D code 2019 to 2020 onwards	P11D code 2018 to 2019	P11D code 2016 to 2017 and 2017 to 2018	P11D code 2015 to 2016	Adjustment	Note
Zero-emission cars (including electric cars)	A	A	A	A	None	1
Diesel cars (all Euro standards up to 2017 to 2018)	Not applicable	Not applicable	D	D	Supplement 3% up to 2017 to 2018	2
Diesel cars that are RDE2 compliant from 2018 to 2019 onwards	F	A	Not applicable	Not applicable	None	3
All other diesel cars from 2018 to 2019 onwards	D	D	Not applicable	Not applicable	Supplement 4% from 2018 to 2019	Not applicable
All other	A	A	A	A	None	Not applicable

Notes

1	The appropriate percentage for type E cars is 0% for tax years 2010 to 2011 - 2014 to 2015 inclusive. From tax year 2015 to 2016 onwards, 2 new appropriate percentage bands are introduced and the type E code will no longer be used.
2	Subject to the overall maximum appropriate percentage of 37%.
3	For tax years 2011 to 2012 - 2017 to 2018, the diesel supplement applies to all diesel cars, including Euro IV diesels first registered before 1 January 2006. From April 2018, if the diesel car is certified to meet Euro standard 6d (see EIM24705), the diesel supplement does not apply. However,the diesel supplement will continue to apply to all other diesel cars. From tax year 2019 to 2020 onwards, a new type F code is introduced which should be used for diesel cars that meet the Euro standard 6d.

The appropriate percentage for type E cars is 0% for tax years 2010 to 2011 - 2014 to 2015 inclusive. From tax year 2015 to 2016 onwards, 2 new appropriate percentage bands are introduced and the type E code will no longer be used.

Subject to the overall maximum appropriate percentage of 37%.

For tax years 2011 to 2012 - 2017 to 2018, the diesel supplement applies to all diesel cars, including Euro IV diesels first registered before 1 January 2006. From April 2018, if the diesel car is certified to meet Euro standard 6d (see EIM24705), the diesel supplement does not apply. However,the diesel supplement will continue to apply to all other diesel cars. From tax year 2019 to 2020 onwards, a new type F code is introduced which should be used for diesel cars that meet the Euro standard 6d.