# Car benefit calculation Steps 1-6, 2002/03 to 2010/11: diesel car approved to Euro IV or Euro 5 limits (type L): 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 EIM24810. They do not apply to diesel cars only approved to Euro III limits, which are type D (see example at EIM25025).

Details for both examples below are the same. The price of the car and accessories (the figure at step 4) is £15,000. The approved figure of CO2 emissions is 153g/km.

In both cases, for years from 2008/09 only, check whether the car is a QUALEC (EIM24605).

If not, round down the CO2 emissions figure to 150g/km and 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).

### Example 1: Euro IV diesel car first registered on or before 31 December 2005

### 2003/04

The appropriate percentage from the ready reckoner is 15% (CO2 below lower threshold). Add the 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage becomes 15% + 3% = 18%. Cancel the diesel supplement added at the previous step. The appropriate percentage (the figure at step 5) is therefore 15%. The basic car benefit charge is £15,000 x 15% = £2,250.

### 2006/07

The appropriate percentage is 17% (CO2 now above 140g/km lower threshold for the year). Add the 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage becomes 17% + 3% = 20%. Cancel the diesel supplement added at the previous step. The appropriate percentage (the figure at step 5) is therefore 17%. The basic car benefit charge is £15,000 x 17% = £2,550.

### 2008/09

The car is not a QUALEC, so the appropriate percentage is 18%. Add the 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage becomes 18% + 3% = 21%. Cancel the diesel supplement added at the previous step. The appropriate percentage (the figure at step 5) is therefore 18%. The basic car benefit charge is £15,000 x 18% = £2,700.

Had the car been a QUALEC, the appropriate percentage would have been 10% + 3% - 3% (add and cancel diesel supplement) = 10% and the basic car benefit charge £1,500.

### Example 2: Euro IV or Euro 5 diesel car first registered on or after 1 January 2006

### 2006/07

As above, the appropriate percentage is 17%. Add the 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage becomes 17% + 3% = 20%. Because the car was first registered on or after 1 January 2006, the diesel supplement added at the previous step is retained, not cancelled. The basic car benefit charge is £15,000 x 20% = £3,000.

### 2008/09

The car is not a QUALEC, so the appropriate percentage is 18%. Add the 3% diesel supplement, subject to a maximum at step 5 of 35%. The appropriate percentage becomes 18% + 3% = 21%. The appropriate percentage (the figure at step 5) is therefore 21%. The basic car benefit charge is £15,000 x 21% = £3,150.

Had the car been a QUALEC, the appropriate percentage would have been 10% + 3% = 13% (add diesel supplement, not cancelled because of the date the car was first registered) and the basic car benefit charge £1,950.

### Other diesel cars

For examples on diesel cars only approved to Euro III and lower standards (type D) see EIM25025.