Car benefit calculation Step 5: appropriate percentage, 2002/03 onwards: car first registered before 1 January 1998
Section 142 ITEPA 2003
This page relates to step 5 of the method statement in Section 121(1) ITEPA 2003, see EIM24015.
For all cars first registered before 1 January 1998, the appropriate percentage used to calculate the car benefit charge is based on engine size. This is still the case even if (exceptionally) there is a CO2 emissions figure available for such a car. This is because the European Union rules about measuring and recording CO2 emissions for new cars on sale did not apply before 1 January 1998, so CO2 emissions data is not generally available for cars first registered before that date.
These appropriate percentages apply to all cars first registered before 1 January 1998.
|### Engine Size (cc)||### Appropriate Percentage up to and including 2015/16||### Appropriate percentage|
|0 to 1,400||15%||16%|
|1,401 to 2,000||22%||27%|
|2,001 and more||32%||37%|
|No cylinder capacity (engine size not measured in cc)||Appropriate percentage||Appropriate percentage|
|Solely electric cars (see note 1)||Until 2010/11 (NB legislation repealed for tax years after 2010/11||15%|
|Cars without reciprocating pistons - such as rotary engines||Up to an including 2015/16||32%||From 2016/17||37%|
Note 1: no cars were ever manufactured that met these conditions, so the repeal has no practical effect.
Cars powered by diesel or alternative fuels
Remember that reductions and supplements that apply to cars first registered on or after 1 January 1998 do not apply to these cars.
The above appropriate percentages apply to all cars first registered before 1 January 1998.