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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage, 2011/12 onwards: type D, all diesel cars

Section 141 ITEPA 2003

From 2011/12 onwards, all diesel cars (both the former types D and L) are within type D with the exception of diesel hybrid cars which will be within type A. For car benefit purposes a diesel car is one which is propelled solely by diesel and a hybrid does not fit this definition.

From that year, the appropriate percentage based on the CO2 emissions figure of all diesel cars is increased by 3%. So if that figure is 18%, the appropriate percentage used to calculate the car benefit charge is increased to 21%. See example EIM25055.

The supplement cannot take the appropriate percentage above the maximum. Up to 2014-15 the maximum is 35%, from 2015-16 the maximum is 37%.

Years 2002/03 to 2010/11: cars first registered on or after 1 January 1998

For diesel cars approved to standards up to and including Euro III/Euro 3 standard, see EIM24805.

For diesel cars approved to Euro IV/Euro 4 and higher standards, see EIM24810.

Cars first registered before 1 January 1998

The diesel supplement only applies to cars first registered on 1 January 1998 or later. For cars registered before 1 January 1998 see EIM24975.