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HMRC internal manual

# Car benefit calculation Steps 1-6, 2002/03 to 2010/11: bi-fuel LPG car with no approved gas CO2 emissions figure (type C): 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 EIM24835.

### 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 C cars (both types C1 and C2) are affected by the adjustment on this page. For simplicity, the two examples below require the same calculation.

### TYPE C1: car manufactured as bi-fuel, but first registered in 1998 or 1999.

These cars have only one approved CO2 emissions figure (for petrol).

The list price of the bi-fuel car is £17,900; the equivalent petrol-only model has a list price of £15,700. The additional cost of manufacturing the vehicle to run on LPG as well as petrol is ignored (see EIM24280), so the figure at step 4 is £15,700. The petrol CO2 emissions figure is 170g/km (no rounding required).

Look up the appropriate percentage for a petrol-powered car at 170g/km CO2 in the ready reckoner at EIM24700, then make any required adjustments for this type of car (summary at EIM24720 for 2002/03 to 2005/06 only).

### TYPE C2: petrol car converted to use LPG as well as petrol after the type approval process

The list price of the car and accessories is £17,500, including LPG conversion costs of £1,800. The conversion costs are ignored (see EIM24280), so the figure at step 4 is £15,700. The petrol CO2 emissions figure is 170g/km (no rounding required).

Look up the appropriate percentage for a petrol-powered car at 170g/km CO2 in the ready reckoner at EIM24700, then make any required adjustments for this type of car (summary at EIM24720 for 2002/03 to 2005/06 and EIM24725 for 2006/07 onwards).

### CALCULATION

2003/04: the appropriate percentage from the ready reckoner is 18%. There is a standard reduction of 1% (no additional reduction is available for this type of car). The appropriate percentage (the figure at step 5) is therefore 18% - 1% = 17%. The basic car benefit charge is (the figure at step 6) £15,700 x 17% = £2,669.

2006/07: the appropriate percentage from the ready reckoner is 21% but there is no longer any reduction. The appropriate percentage (the figure at step 5) is therefore 21%. The basic car benefit charge (the figure at step 6) is £15,700 x 21% = £3,297.

### Years from 2006/07 to 2010/11

No adjustments are available for type C cars, so the appropriate percentage is calculated as though they were type P cars, see EIM24550.

See EIM25060.