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HMRC internal manual

# Car benefit calculation Steps 1-6, 2002/03 to 2010/11: petrol car with approved CO2 emissions figure (type P): example

This page illustrates steps 5 and 6 of the method statement in Section 121(1) ITEPA 2003, see EIM24015 and the examples show how to do the calculations explained at EIM24550.

Example 1: Petrol car with approved CO2 emissions figure

The price of the car and accessories (the figure at step 4) is £15,000. The approved CO2 emissions figure is 183g/km .

For years from 2008/09 only, check whether the car is a QUALEC (EIM24605).

If it is not, round the CO2 emissions figure down to 180 g/km, then look up the appropriate percentage for a petrol-powered car in the ready reckoner at EIM24700.

Finally, make any required adjustments for this type of car (summary at EIM24720 for years to 2005/06 and at EIM24725 for 2006/07 to 2010/11).

### 2006/07 and 2007/08

The appropriate percentage (the figure at step 5) is 23%. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x 23% = £3,450.

### 2008/09

The car is not a QUALEC because its CO2 emissions figure exceeds the limit at EIM24605. The appropriate percentage (the figure at step 5) is 24%. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x 24% = £3,600.

### Example 2: Petrol car with low CO2 emissions

The price of the car and accessories (the figure at step 4) is £15,000. The approved figure of CO2 emissions is 119 g/km.

For years from 2008/09 only, check whether the car is a QUALEC (EIM24605).

If it is not, round the CO2 emissions figure down to 115 g/km, then look up the appropriate percentage for a petrol-powered car in the ready reckoner at EIM24700.

Finally, make any required adjustments for this type of car (summary at EIM24720 for years to 2005/06 and at EIM24725 for 2006/07 onwards).

### 2006/07 and 2007/08

The appropriate percentage (the figure at step 5) is 15%, as the CO2 figure is below the lower threshold for the year. No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x15% = £2,250.

### 2008/09

The car is a QUALEC: the unrounded CO2 emissions figure of 119 does not exceed the limit of 120, EIM24605.

The appropriate percentage (the figure at step 5) is 10% (EIM24605). No adjustments are necessary. The basic car benefit charge (the figure at step 6) is £15,000 x10% = £1,500.

See EIM25060.