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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage, 2012/13 onwards: car with an approved CO2 emissions figure: relevant threshold

Section 139 ITEPA 2003

The relevant threshold applies from 2012/13 only. (The lower threshold applies to years from 2002/03 to 2011/12, see EIM24650.)

The relevant threshold

This page relates to step 5 of the method statement in Section 121(1) ITEPA 2003, see EIM24015.

The relevant threshold is the approved CO2 emissions figure upon which all calculations of the appropriate percentage are based from 2012/13 onwards.

The relevant threshold has been specified for the following tax years:

### Tax year ### Relevant threshold, g/km
   
2012/13 100
2013/14 95

Calculating the appropriate percentage from the relevant threshold

The appropriate percentage is calculated as follows:

  • if the car’s CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage
g/km 2012/13 2013/14 2014/15 2015/16 2016/17
           
  0% 0% 0% 5% 7%
1 - 50 5% 5% 5% 5% 7%
51 - 75 5% 5% 5% 9% 11%
76 - 94 10% 10% 11% 13% 15%

If the car’s CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage is:

  2012/13 2013/14 2014/15 2015/16 2016/17
           
relevant threshold (g/km) 100 95 95 95 95
appropriate percentage 11% 11% 12% 14% 16%

If the car’s CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage is the lesser of:

  • The threshold percentage increased by one percent for each 5g/km by which the CO2 emissions figure exceeds the relevant threshold for the year; and
  • 35% (up to 2014/15) and 37% from 2016/17.

There is a ready reckoner for the appropriate percentage for a type A car for 2012/13 onwards at EIM24705.

For examples showing the calculation of the car benefit charge for type A cars with approved CO2 emissions figures for 2012/13 onwards, see EIM25060.