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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 5, appropriate percentage, 2002/03 onwards: car without a CO2 emissions figure and registered in or after 1998

Section 140 ITEPA 2003

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

It should be unusual for a car first registered on 1 January 1998 or later not to have an approved CO2 emissions figure. This will probably only be the case for rare and one-off models of car (see EIM24530) and for some cars that have been individually imported from outside the European Union (see EIM24525).

Cars powered by petrol

For cars first registered on 1 January 1998 or later that do not have an approved CO2 emissions figure the appropriate percentage used to calculate the car benefit charge is based on engine size.

### Engine Size (cc) ### Appropriate percentage up to 2014/15 ### Appropriate percentage
0 to 1,400 15% 15%
1,401 to 2,000 25% 25%
2,001 and more 35% 37%

If a car has no cylinder capacity (i.e. it does not have an engine size measured in cc) the appropriate percentage will be:

  • if the car cannot in any circumstances emit CO2 by being driven (for example a car runs solely on electricity) (see EIM24815)

    • 15% until 2009/10
    • 0% from 2010/11 to 2014/15 inclusive
    • 5% for 2015/16
    • 7% 2016/17
  • Otherwise, for example a rotary engine

    • 35% up to 2014/15
    • 37% from 2015/16.

Cars powered by diesel or alternative fuels

The adjustments to the appropriate percentage detailed below apply, except for any part of the reduction that depends on the CO2 emissions figure. The appropriate percentage from the table above is used unless the car falls within one of the categories for which adjustments are required. For details of adjustments required, see

  • EIM24825 for years from 2002/03 to 2005/06,
  • EIM24830 for years from 2006/07 to 2010/11, and
  • EIM24835 for years from 2011/12.

Cars first registered before 1998

See EIM24975.