Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Car benefit calculation Step 5, appropriate percentage, 2008/09 to 2011/12: car with an approved CO2 emissions figure: qualifying low emissions cars (QUALECs)

Section 139 ITEPA (as amended by section 59 Finance Act 2006 and section 58 Finance Act 2010)

Years to which this page applies

This page applies from 2008/09 only. It has no relevance to other years. 

Cars to which this page applies

This page applies to cars of all types except type E, to which the special rules for electric-only cars from 2002/03 to 2009/10 (EIM24815) and for zero-emission cars from 2010/11 onwards (EIM24850) apply.

What is a QUALEC?

A QUALEC is a car first registered on or after 1 January 1998 with a CO2 emissions figure which does not exceed exactly 120 g/km.

Note that the exact CO2 emissions figure is used and that the rounding used elsewhere does not apply when deciding whether or not a car is a QUALEC. So a car with CO2 emissions of 120 is a QUALEC for the relevant years, but a car with CO2 emissions of 121 is not.

For 2010/11 and 2011/12, it includes cars with CO2 emissions between 1-75 g/km (see EIM24610 for details of how these cars are dealt with in 2012/13 to 2014/15 inclusive).

Determining the appropriate percentage for QUALECs

Subject to the adjustments below, the appropriate percentage for QUALECs is 10%.

For 2010/11 and 2011/12, the appropriate percentage for a car with a CO2 emissions figure between 1-75 g/km is 5%.

For 2008/09 to 2011/12, adjustments for diesel cars, both type D (EIM24805) and type L (EIM24810) apply to QUALECs as they do to other cars.

However, there are no further reductions if the QUALEC uses alternative fuels. So there are no further reductions for cars of type B (EIM24830), C (EIM24835), G (EIM24840) or H (EIM24820).