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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage: approved CO2 emissions figure: more unusual models

This page relates to step 5 of the method statement in Section 121(1) ITEPA 2003, see EIM24015. It will help in understanding the guidance following this paragraph if you are familiar with the guidance at EIM24505 explaining the term approved CO2 emissions figure.

Although most cars that have been produced for sale in the UK and EU from 1 January 1998 onwards go though a type approval process and have an approved CO2 emissions figure (see EIM24505), some rare and one-off models of car are not subjected to the full type approval process. These cars will not have approved CO2 emissions figures and therefore the rules in EIM24950 will apply.

This will also be the case for any vehicles that count as cars for car benefit purposes but that do not count as cars under the type approval rules. The tax legislation and type approval legislation contain different definitions of the term car and therefore there may be a few differences of classification.

If a car was first registered before 1998, the rules in EIM24975 always apply.