Car Benefits

The charge is based on a percentage of the car's “price”. “Price” for this purpose is

1. The list price at the time the car was first registered plus the price of extras.

2. Where the “price” exceeds £80,000, the “price” used is restricted to £80,000.

For cars first registered after 31 December 1997 the charge, based on the car's “price”, is graduated according to the level of the car's approved CO 2 emissions.

For petrol cars with an approved CO 2 emission figure .

CO 2 g/km	% of price subject to tax	CO 2 g/km	% of price subject to tax	CO 2 g/km	% of price subject to tax
08-10		08-10		08-10
120 or less	10	170-4	22	210-4	30
121-139	15	175-9	23	215-9	31
140-4	16	180-4	24	220-4	32
145-9	17	185-9	25	225-9	33
150-4	18	190-4	26	230-4	34
155-9	19	195-9	27	235-9	35
160-4	20	200-4	28	240+	35
165-9	21	205-9	29

Notes

•  The exact CO 2 emissions figure should be rounded down to the nearest 5 g/km for levels of 125g/km or more.

•  For diesels not meeting Euro IV emissions standards or registered after 31 December 2005, add 3%, subject to maximum charge of 35%.

•  Hybrid petrol/electric cars are subject to a 3% reduction, with a minimum 10% charge.

•  LPG, dual LPG/petrol and (for 2008/09 only) E85 cars are subject to a 2% reduction, with a minimum 10% charge. Reduction does not apply to LPG conversions.

•  For electric only cars, a 9% charge applies.

For cars with no approved CO 2 emissions figure, the charge is based on engine size.

Engine Size (cc)	Percentage of car's price charged to tax
0 – 1,400	15
1,401 – 2,000	25
2,001 and more	35

Car Fuel Benefits

For cars with an approved CO 2 emission figure, the benefit is based on a flat amount of £16,900 (£16,900 2008/09). To calculate the amount of the benefit the percentage figure in the above car benefits table (that is from 10% to 35%) is multiplied by £16,900. The percentage figures allow for a diesel fuel surcharge. For example, in 2009/10 a petrol car emitting 165 g/km would give rise to a fuel benefit of 21% of £16,900 = £3,549.

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The contents of this Bulletin are based on the proposals put forward by the Chancellor in his Budget speech and explained in documents subsequently published by HMRC and the Treasury.
All Budget proposals may be subject to change before the Finance Act is passed. References to spouse, husband and wife and married couples include references to registered civil partners and civil partnerships.
This Bulletin is provided for general consideration only and no action should be taken or refrained from based on its contents alone. Accordingly, no responsibility can be accepted for any loss occasioned as a result of any such action or inaction.
Professional advice must always be taken.

This news item is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as at July 2008. No action must be taken or refrained from based on its contents alone. Accordingly no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.

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