SolvedEIM24950 | Car benefit calculation Step 5, appropriate percentage, 2002 to 2003 onwards: car without a CO2 emissions figure and registered in or after 1998
From HM Revenue & Customs · Employment Income Manual
This page relates to step 5 of the method statement in section 121(1) ITEPA 2003, see EIM24015.
It should be unusual for a car first registered on 1 January 1998 or later not to have an approved CO2 emissions figure. This will probably only be the case for rare and one-off models of car (see EIM24530) and for some cars that have been individually imported from outside the European Union (see EIM24525).
Cars powered by petrol
For cars first registered on 1 January 1998 or later that do not have an approved CO2 emissions figure the appropriate percentage used to calculate the car benefit charge is based on engine size.
| Engine size (cc) | Appropriate percentage up to 2014 to 2015 | Appropriate percentage 2015 to 2016 | Appropriate percentage 2016 to 2017 | Appropriate percentage 2017 to 2018 | Appropriate percentage 2018 to 2019 | Appropriate percentage 2019 to 2020 | Appropriate percentage 2020 to 2021 onwards |
|---|---|---|---|---|---|---|---|
| 0 to 1,400 | 15% | 15% | 16% | 18% | 20% | 23% | 24% |
| 1,401 to 2,000 | 25% | 25% | 27% | 29% | 31% | 34% | 35% |
| 2,001 and more | 35% | 37% | 37% | 37% | 37% | 37% | 37% |
If a car has no cylinder capacity (it does not have an engine size measured in cc) the appropriate percentage will be as follows -
If the car cannot in any circumstances emit CO2 by being driven (for example a car runs solely on electricity) (see EIM24815):
15% until 2009 to 2010
0% from 2010 to 2011 to 2014 to 2015
From tax year 2015 to 2016 onwards, use the appropriate percentage for a car with CO2 emissions of 0 g/km for the relevant tax year (see the ready reckoner at EIM24705).
Otherwise, for example a rotary engine:
35% up to 2014 to 2015
37% from 2015 to 2016 onwards
Cars powered by diesel or alternative fuels
The adjustments to the appropriate percentage detailed below apply, except for any part of the reduction that depends on the CO2 emissions figure. The appropriate percentage from the table above is used unless the car falls within one of the categories for which adjustments are required.
Cars first registered before 1998
See EIM24975