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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage, 2002/03 to 2010/11: type C cars

Regulation 7 of The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) Regulations 2001, SI 2001 No. 1123 (as amended by SI 2005 No 2209)

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

Approved CO2 emissions figure

The tax charge is calculated using the appropriate percentage that applies to the CO2 emissions figure when the car runs on petrol. This is the only type approved CO2 emissions figure available for these cars. You may sometimes be told that the business that carried out the LPG conversion process has supplied a new CO2 emissions figure, but this cannot be used for car benefit purposes. The approved CO2 emissions figure is set for the life of a car at the time of the type approval process and cannot be changed by subsequent events, see EIM24505.

Where a reduction is available, it is therefore applied to the appropriate percentage based on the petrol CO2 emissions figure.

Years to 2010/11: 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 C cars (both types C1 and C2) are affected by the adjustment on this page.

Years 2002/03 to 2005/06: reduction in appropriate percentage

For years from 2002/03 to 2005/06 only, the reduction in the appropriate percentage is 1%. See example EIM25040.

Years from 2011/12 onwards

Type C cars are merged into new type A from 2011/12 onwards (see EIM24860), with no reduction in the appropriate percentage.

Cars first registered before 1 January 1998

Remember that reductions do not apply to these cars.