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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: exceptions: cost of converting car to run on road fuel gas

Section 125(2)(b) ITEPA 2003

Before reading the guidance that follows this paragraph, ensure that you are familiar with:

  • the method statement in Section 121(1) ITEPA 2003, see EIM24015 (this page concerns step 2)
  • the general introduction to the treatment of accessories at EIM24200.

Cars affected

EIM24825 details the various kinds of gas and bi-fuel cars and summarises all the statutory adjustments to the car benefit calculation. It also contains links to the adjustments which apply to other types of bi-fuel car.

Only type C2 cars are affected by the adjustment on this page.

Reduction in price of accessories

Disregard the cost of conversion to run on road fuel gas at step 2.

Road fuel gas

This means any substance that is gaseous at a temperature of 15 centigrade and under pressure of 1013.25 millibars, and that is for use as a fuel in road vehicles. The two main types of road fuel gas that are currently in use are compressed natural gas (CNG) and liquid petroleum gas (LPG).