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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage, 2006/07 to 2010/11: table summarising adjustments to appropriate percentage for different fuels

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

The ready reckoner at EIM24700 gives the appropriate percentage for cars powered by petrol (type P).

This table brings together all adjustments to the appropriate percentage arising from the use of other fuels, including those for diesel cars, from 2006/07 to 2010/11. For other years, see below.

Fuller information is available at the page references given.

Type of fuel Code Page Standard adjustment See note Other adjustments
Petrol P EIM24800 none   none
Diesel (up to Euro III) D EIM24805 supplement: 3% 1 none
Diesel (Euro IV) first registered on or before 31 December 2005 L EIM24810 cancel type D supplement, above   none
Diesel (Euro IV or 5) first registered on or after 1 January 2006 L EIM24810 supplement: 3% (as type D) 1 none
Electric only E EIM24815 reduction: 6% 4 none
Petrol/electric hybrid H EIM24820 reduction: 3% 3 none
Gas only B EIM24830 reduction: 2% 2 none
Bi-fuel with CO2 emissions figure for gas B EIM24830 reduction: 2% 2, 3 use lowest CO2 figure
Bi-fuel conversion, or other bi-fuel not within type B C EIM24835 none 3 none
Car manufactured to be capable of running on E85 fuel G EIM24840 reduction: 2% (from 2008/09 only) 3 none


1 Subject to the overall maximum appropriate percentage of 35%.
2 Bi-fuel car meeting the conditions to be a type B car at EIM24825.
3 These adjustments do not apply to qualifying low emissions cars (QUALECs, see EIM24605), nor to any diesel/electric hybrid cars that may become available. QUALECs are only defined for years from 2008/09 onwards.
4 Appropriate percentage for type E cars is 0% in 2010/11

Supplements and reductions only apply to cars first registered on or after 1 January 1998. They apply to all such cars, whether or not they have an approved CO2 emissions figure.

Summary of the changes to the 2005/06 rules

The changes are:

  • types B and H: standard reduction increased by 1% each (to 2% and 3% respectively) but the extra adjustment formerly available for very low CO2 emission cars no longer applies
  • type C: former reduction no longer applies
  • type L: supplement for type D cars also applies to type L cars first registered on or after 1 January 2006 (those registered before 1 January 2006 are unaffected).

Unless the car falls into one of the categories for which adjustments are required, it is type P.

Further changes from 2008/09

The changes are:

  • introduction of QUALECs, to which adjustments for diesel cars apply but alternative fuel reductions do not (see EIM24605)
  • introduction of reduction for Type G cars (see above and EIM24840).

Adjustments in other years

For adjustments for other years, see

  • EIM24720 for years from 2002/03 to 2005/06, and
  • EIM24730 for years from 2011/12.