The calculation of benefits in kind on cars changed on 6 April 2002 and will be based on a percentage of the list price graduated according to the carbon dioxide (CO2) emissions. The approved CO2 emission figure will be shown on the new vehicle registration document (V5) for cars registered from 1 March 2001. Emission figures for cars registered between 1 January 1998 and 28 February 2001 can be found on the internet at www.smmt.co.uk.

·    The previous adjustments for age and mileage of the car will no longer apply.

·    The minimum charge will be 15% of the list price for cars with the lowest CO2 emissions and the maximum charge will be 35% of the list price.

·    The charge will increase by 1% for every additional 5 grams per kilometre (g/km), rounded down to the nearest 5g/km.

·    If a car runs solely on diesel there will be a supplement on the charge up to a maximum of 35%. There will however be no additional supplement for diesel cars registered before 1 January 1998.                        

Cars with no approved CO2 emission figures (no CO2) and cars registered prior to 1 January 1998 (pre Jan 1998) will be charged according to the engine size.

Example:  a petrol car costing £12,000 with a CO2 emission of 171 g/km will incur a benefit of £1,920 (16% x £12,000).