Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

Car benefit calculation Steps 1-6, 2002/03 to 2010/11: bi-fuel LPG car with approved gas CO2 emissions figure (type B): example

This page illustrates steps 5 and 6 of the method statement in Section 121(1) ITEPA 2003, see EIM24015 and the example shows how to do the calculations explained at EIM24830.

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 B cars are affected by the adjustment on this page.

Type B cars: car manufactured as bi-fuel and first registered on or after 1 January 2000

The price of the car and accessories (the figure at step 4) is £14,500 (no changes are required for this type of car, see EIM24825). The gas CO2 emissions figure is 135g/km.

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

If it is not, 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 2002/03 to 2005/06 and EIM24725 for 2006/07 to 2010/11).

2003/04

The appropriate percentage from the ready reckoner is 15% (CO2 below lower threshold). There is a standard reduction of 1%, plus an additional 1% (CO2 is 20g/km below the 155g/km lower threshold for the year). The appropriate percentage (the figure at step 5) is 15% - 2% = 13%. The basic car benefit charge (the figure at step 6) is £14,500 x 13% = £1,885.

2006/07

The appropriate percentage from the ready reckoner is 15% (CO2 below lower threshold). There is a standard reduction of 2%. The appropriate percentage (the figure at step 5) is therefore 15% - 2% = 13%. The basic car benefit charge (the figure at step 6) is £14,500 x 13% = £1,885.

2008/09

The car is not a QUALEC (had it been, the appropriate percentage would be 10% with no further reduction, see EIM24605).

The appropriate percentage is therefore 13% and the basic car benefit charge £1,885, calculated in the same way as for 2006/07.

Years from 2011/12

See EIM25060.