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.
| Tax year | Type | Guidance |
|---|---|---|
| 2020 to 2021 onwards | Cars with CO2 emissions between 1 to 50 g/km | EIM24611 |
| 2012 to 2013 - 2014 to 2015 | Cars with CO2 emissions between 1 to 75 g/km | EIM24610 |
| 2008 to 2009 - 2011 to 2012 | Qualifying low emissions cars (QUALECs) | EIM24605 |
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.
| Tax year | Threshold | Guidance |
|---|---|---|
| 2012 to 2013 onwards | Relevant threshold | EIM24605 |
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.
| Tax year | Guidance |
|---|---|
| 2011 to 2012 onwards | EIM24855 |
Full details are on succeeding pages.