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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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The benefits code: car benefit: calculating the cash equivalent: index: contents

The guidance on car and car fuel benefits has been restructured. There is a conversion chart between the old and new page numbers at EIM23005.

This index covers the calculation of the cash equivalent. There are related indexes at:

  1. EIM23010
    Car benefit: the charge to tax
  2. EIM25500
    Car fuel benefit
Calculation: introduction and method
  1. EIM24010
    Calculating the amount of the car benefit charge: introduction
  2. EIM24015
    Car benefit calculation: method statement
Calculation Steps 1 to 4: the price of the car for tax purposes
  1. EIM24050
    Steps 1 to 4, price of the car: introduction
  2. EIM24055
    Steps 1 to 4, price of the car: step by step guide
Calculation Step 1: the price of the car - list or notional price
  1. EIM24100
    Step 1, price of the car: list price or notional price
  2. EIM24105
    Step 1, price of the car: list price
  3. EIM24110
    Step 1, price of the car: list price: manufacturer, importer or distributor
  4. EIM24115
    Step 1, price of the car: imported cars
  5. EIM24120
    Step 1, price of the car: carbon offset charges
  6. EIM24150
    Step 1, price of the car: notional price
  7. EIM24155
    Step 1, price of the car: notional price - particular cars
  8. EIM24175
    Step 1, price of the car: exception: cars manufactured to run on road fuel gas
  9. EIM24180
    Step 1, price of the car: automatic car for use by a disabled employee
Calculation Step 2: accessories
  1. EIM24200
    Step 2, accessories: introduction
  2. EIM24205
    Step 2, accessories: qualifying accessory (definitions)
  3. EIM24207
    Step 2, accessories: security enhanced cars
  4. EIM24210
    Step 2, accessories: standard accessory, non-standard accessory (definitions)
  5. EIM24215
    Step 2, accessories: initial extra accessory, later accessory (definitions)
  6. EIM24220
    Step 2, accessories: list price, notional price (definitions)
  7. EIM24225
    Step 2, accessories: conditions when determining list or notional price (part 1)
  8. EIM24230
    Step 2, accessories: conditions when determining list or notional price (part 2)
  9. EIM24235
    Step 2, accessories: initial extra accessory with list price quoted by manufacturer, etc. of the car
  10. EIM24240
    Step 2, accessories: initial extra accessory with list price quoted by manufacturer, etc. of the accessory
  11. EIM24245
    Step 2, accessories: initial extra accessory with notional price
  12. EIM24250
    Step 2, accessories: later accessory
  13. EIM24255
    Step 2, accessories: replacement accessories: general
  14. EIM24260
    Step 2, accessories: replacement accessories: new accessory not superior to old
  15. EIM24265
    Step 2, accessories: replacement accessories: new accessory superior to old
  16. EIM24270
    Step 2, accessories: exceptions: equipment necessarily provided for use in the performance of the duties
  17. EIM24275
    Step 2, accessories: exceptions: equipment for disabled persons
  18. EIM24280
    Step 2, accessories: exceptions: cost of converting car to run on road fuel gas
  19. EIM24285
    Step 2, accessories: exceptions: miscellaneous
  20. EIM24290
    Step 2, accessories: personalised car number plates
Calculation Step 3: Capital contributions
  1. EIM24350
    Step 3, capital contributions: definition and effect
  2. EIM24355
    Step 3, capital contributions: the amount deductible
  3. EIM24360
    Step 3, capital contributions: years when deduction is allowed
  4. EIM24365
    Step 3, capital contributions: repayment of capital contributions
Calculation Steps 1-4: Classic cars
  1. EIM24400
    Steps 1-4, classic car: definition
  2. EIM24405
    Steps 1-4, classic car: market value
  3. EIM24410
    Steps 1-4, classic car: capital contributions
Calculation Step 4: Price cap (2002/03 to 2010/11 only)
  1. EIM24440
    Step 4, price cap for expensive cars (2002/03 to 2010/11 only)
Calculation Steps 1-4: Examples
  1. EIM24450
    Steps 1-4, examples: list price
  2. EIM24455
    Steps 1-4, examples: notional price
  3. EIM24460
    Steps 1-4, examples: classic car
  4. EIM24465
    Steps 1-4, examples: repayment of capital contribution
Calculation Step 5: Appropriate percentage: background
  1. EIM24500
    Step 5, appropriate percentage: introduction
  2. EIM24505
    Step 5, appropriate percentage: when does a car have an approved CO2 emissions figure?
  3. EIM24510
    Step 5, appropriate percentage: approved CO2 emissions figure: car first registered in the UK from 1 January 1998 to 28 February 2001
  4. EIM24515
    Step 5, appropriate percentage: approved CO2 emissions figure: car first registered in the UK from 1 March 2001 onwards
  5. EIM24520
    Step 5, appropriate percentage: approved CO2 emissions figure: car first registered in other EU countries
  6. EIM24525
    Step 5, appropriate percentage: approved CO2 emissions figure: car imported from outside the EU
  7. EIM24530
    Step 5, appropriate percentage: approved CO2 emissions figure: more unusual models
  8. EIM24535
    Step 5, appropriate percentage: approved CO2 emissions figure: cases of difficulty
Calculation Step 5: Appropriate percentage: car with an approved CO2 emissions figure
  1. EIM24550
    Step 5, 2002/03 onwards: overview
  2. EIM24600
    Step 5, 2002/03 to 2005/06: low emission cars
  3. EIM24605
    Step 5, 2008/09 to 2011/12: qualifying low emissions cars (QUALECs)
  4. EIM24610
    Step 5, 2012/13 to 2014/15: cars with CO2 emissions between 1-75 g/km
  5. EIM24620
    Step 5, appropriate percentage bands from 2015/16
  6. EIM24650
    Step 5, 2002/03 to 2011/12: lower threshold
  7. EIM24655
    Step 5, 2012/13 onwards: relevant threshold
  8. EIM24700
    Step 5, 2002/03 to 2010/11: ready reckoner for type P (petrol-powered) cars
  9. EIM24705
    Step 5, 2011/12 onwards: ready reckoner for type A cars from 2011/12
  10. EIM24720
    Step 5, 2002/03 to 2005/06: table summarising adjustments to appropriate percentage for different fuels
  11. EIM24725
    Step 5, 2006/07 to 2010/11: table summarising adjustments to appropriate percentage for different fuels
  12. EIM24730
    Step 5, 2011/12 to 2014/15: adjustments to appropriate percentage and code letters used for different fuels
  13. EIM24735
    Step 5, 2015/15 onwards; adjustments to appropriate percentage and code letters used for different fuels.
  14. EIM24800
    Step 5, 2002/03 to 2010/11: type P, petrol-powered cars
  15. EIM24805
    Step 5, 2002/03 to 2010/11: type D, diesel cars up to and including Euro III
  16. EIM24810
    Step 5, 2002/03 to 2010/11: type L, Euro IV and Euro 5 diesels
  17. EIM24815
    Step 5, 2002/03 to 2009/10: type E, cars propelled solely by electricity
  18. EIM24820
    Step 5, 2002/03 to 2010/11: type H, petrol/electric hybrid cars
  19. EIM24825
    Step 5, 2002/03 to 2010/11: types B and C bi-fuel or road fuel gas cars - overview
  20. EIM24830
    Step 5, 2002/03 to 2010/11: type B cars
  21. EIM24835
    Step 5, 2002/03 to 2010/11: type C cars
  22. EIM24840
    Step 5, 2008/09 to 2010/11: type G cars
  23. EIM24850
    Step 5, 2010/11 onwards: type E, zero emission cars
  24. EIM24855
    Step 5, 2011/12 onwards: type D, all diesel cars
  25. EIM24860
    Step 5, 2011/12 to 2014/15: type A, all cars except types E and D
  26. EIM24900
    Step 5, 2002/03 onwards: automatic car for use by a disabled employee
  27. EIM24905
    Step 5, 2002/03 onwards: meaning of automatic transmission
Calculation Step 5: Appropriate percentage: car without an approved CO2 emissions figure
  1. EIM24950
    Step 5, 2002/03 onwards: car without an approved CO2 emissions figure
Calculation Step 5: Appropriate percentage: car first registered before 1998
  1. EIM24975
    Step 5, 2002/03 onwards: car first registered before 1 January 1998
Calculation Step 6: annual car benefit charge before reductions
  1. EIM25000
    Step 6: annual car benefit charge before reductions
Calculation Steps 1-6: examples
  1. EIM25020
    Steps 1-6, 2002/03 to 2010/11: petrol car with approved CO2 emissions figure (type P): example
  2. EIM25025
    Steps 1-6, 2002/03 to 2010/11: diesel car with approved CO2 emissions figure (type D): example
  3. EIM25030
    Steps 1-6, 2002/03 to 2010/11: hybrid petrol/electric car (type H): example
  4. EIM25035
    Steps 1-6, 2002/03 to 2010/11: 2002/03 to 2010/11: bi-fuel LPG car with approved gas CO2 emissions figure (type B): example
  5. EIM25040
    Steps 1-6, 2002/03 to 2010/11: bi-fuel LPG car with no approved gas CO2 emissions figure (type C): example
  6. EIM25045
    Steps 1-6, 2002/03 to 2010/11: diesel car approved to Euro IV or Euro 5 limits (type L): example
  7. EIM25050
    Steps 1-6, 2008/09 to 2010/11: car manufactured to run on E85 fuel (type G): example
  8. EIM25055
    Steps 1-6, 2011/12 onwards: diesel car (type D): example
  9. EIM25060
    Steps 1-6, 2011/12 onwards: all cars except types E and D, electric-only and diesel (type A): example
Calculation Step 7: car unavailable
  1. EIM25100
    Step 7: reduction in car benefit charge
  2. EIM25105
    Step 7: reduction in car benefit charge: meaning of unavailable
  3. EIM25125
    Step 7: replacement car
  4. EIM25130
    Step 7: replacement car: meaning of materially better
  5. EIM25135
    Step 7: replacement car: meaning of arrangement
  6. EIM25150
    Step 7: reduction in car benefit charge: example
  7. EIM25170
    Step 7: circumstances when car is unavailable: example
  8. EIM25175
    Step 7: circumstances when car is not unavailable: example
  9. EIM25180
    Step 7: replacement car: circumstances that do not count as arrangements: example
  10. EIM25185
    Step 7: replacement car: circumstances that do count as arrangements: example
Calculation Step 7A: shared car
  1. EIM25200
    Step 7A: introduction
  2. EIM25205
    Step 7A: employees to be disregarded: just and reasonable basis
Calculation Step 8: payments for private use
  1. EIM25250
    Step 8: deduction for payments for private use of a car
  2. EIM25253
    Step 8: deduction for payments for private use of car - exceptional circumstances
  3. EIM25255
    Step 8: deductions for private use of a car – CIR v Quigley
  4. EIM25260
    Step 8: payments for a more expensive car
  5. EIM25261
    Step 8: examples
  6. EIM25265
    Step 8: deductions for private use payments - cases of doubt
Calculation Steps 1-8: example
  1. EIM25290
    Steps 1-8: example