EIM24855 - Car benefit calculation Step 5, appropriate percentage, 2011 to 2012 onwards: type D, all diesel cars

Section 141 ITEPA 2003

From tax year 2011 to 2012 onwards, all diesel cars (both the former types D and L) are within type D with the exception of diesel hybrid cars which will be within type A. For car benefit purposes a diesel car is one which is propelled solely by diesel and a hybrid does not fit this definition.

From that tax year to 2017 to 2018, the appropriate percentage based on the CO2 emissions figure of all diesel cars is increased by 3%. So if that figure is 18%, the appropriate percentage used to calculate the car benefit charge is increased to 21%. See example EIM25055.

From tax year 2018 to 2019 onwards, the appropriate percentage based on the CO2 emissions figure of diesel cars is increased by 4%. From this date, the supplement will apply to all diesel cars except those that are certified to meet Euro standard 6d which are exempt from the supplement. See EIM24705.

The supplement cannot take the appropriate percentage above the maximum. Up to tax year 2014 to 2015, the maximum is 35%. From tax year 2015 to 2016, the maximum is 37%.

Cars first registered before 1 January 1998

The diesel supplement only applies to cars first registered on 1 January 1998 or later. For cars registered before 1 January 1998, see EIM24975.