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Version Superseded: 24/02/2022
Point in time view as at 06/04/2020.
Income Tax (Earnings and Pensions) Act 2003, Cross Heading: Cars: appropriate percentage: first registered on or after 1st January 1998 is up to date with all changes known to be in force on or before 26 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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(1)This section applies to a car first registered on or after 1st January 1998 but before 1st October 1999 if when it was so registered—
(a)it conformed to a vehicle type with an EC type-approval certificate (see section 171(1)), or
(b)it had a UK approval certificate (see section 171(1)),
which specifies a CO2 emissions figure in terms of grams per kilometre driven.
(2)The car’s CO2 emissions figure is that specified figure.
(3)This is subject to section 138 (automatic car for a disabled employee).
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
(1)This section applies to a car first registered on or after 1st October 1999 if it is so registered on the basis of—
(a)an EC certificate of conformity (see section 171(1)), or
(b)a UK approval certificate (see section 171(1)),
which specifies a CO2 emissions figure in terms of grams per kilometre driven.
(2)The car’s CO2 emissions figure is that specified figure unless more than one figure is specified, in which case the car’s CO2 emissions figure is the figure specified as the CO2 emissions (combined) figure.
[F1(2A)For the purpose of determining the car's CO2 emissions figure [F2in a case where the car is first registered before 6 April 2020], ignore any WLTP (worldwide harmonised [F3light] vehicles test procedures) values specified in [F4the EC certificate of conformity or UK approval certificate].]
[F5(2B)For the purpose of determining the car's CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.]
(3)[F6Subsection (2)] is subject to—
(a)section 137 (bi-fuel cars), and
(b)section 138 (automatic car for a disabled employee).
Textual Amendments
F1S. 136(2A) inserted (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2018 (c. 3), s. 48(9)(a)
F2Words in s. 136(2A) inserted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(2)(a)(i)(5)
F3Word in s. 136(2A) substituted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(2)(a)(ii)(5)
F4Words in s. 136(2A) substituted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(2)(a)(iii)(5)
F5S. 136(2B) inserted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(2)(b)(5)
F6Words in s. 136(3) substituted (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2018 (c. 3), s. 48(9)(b)
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
C2Pt. 3 Ch. 6 modified (6.4.2020 for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 9
(1)This section applies to a car first registered on or after 1st January 2000 if it is so registered on the basis of—
(a)an EC certificate of conformity (see section 171(1)), or
(b)a UK approval certificate (see section 171(1)),
which specifies separate CO2 emissions figures in terms of grams per kilometre driven for different fuels.
(2)The car’s CO2 emissions figure is—
(a)the lowest figure specified, or
(b)if there is more than one figure specified in relation to each fuel, the lowest CO2 emissions (combined) figure specified.
[F7(2A)For the purpose of determining the car's CO2 emissions figure [F8in a case where the car is first registered before 6 April 2020], ignore any WLTP (worldwide harmonised [F9light] vehicles test procedures) values specified in [F10the EC certificate of conformity or UK approval certificate].]
[F11(2B)For the purpose of determining the car's CO2 emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.]
(3)[F12Subsection (2)] is subject to section 138 (automatic car for a disabled employee).
Textual Amendments
F7S. 137(2A) inserted (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2018 (c. 3), s. 48(10)(a)
F8Words in s. 137(2A) inserted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(3)(a)(i)(5)
F9Word in s. 137(2A) substituted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(3)(a)(ii)(5)
F10Words in s. 137(2A) substituted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(3)(a)(iii)(5)
F11S. 137(2B) inserted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(3)(b)(5)
F12Words in s. 137(3) substituted (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2018 (c. 3), s. 48(10)(b)
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
(1)This section applies where—
(a)a car with a CO2 emissions figure has automatic transmission (“the automatic car”),
(b)at any time in the year when the automatic car is available to the employee (“E”), E holds a disabled person’s badge, and
(c)by reason of E’s disability, E must, in the event of wanting to drive a car, drive a car which has automatic transmission.
(2)If, under sections 135 to 137, the automatic car’s CO2 emissions figure is more than it would have been if the automatic car had been an equivalent manual car, the CO2 emissions figure for the automatic car is to be the CO2 emissions figure for an equivalent manual car.
(3)In subsection (2) “an equivalent manual car” means a car which—
(a)is first registered at or about the same time as the automatic car, and
(b)does not have automatic transmission, but otherwise is the closest variant available of the make and model of the automatic car.
(4)For the purposes of this section a car has automatic transmission if—
(a)the driver of the car is not provided with any means by which the driver may vary the gear ratio between the engine and the road wheels independently of the accelerator and the brakes, or
(b)the driver is provided with such means, but they do not include—
(i)a clutch pedal, or
(ii)a lever which the driver may operate manually.
(5)For the purposes of this section a car is available to an employee at a particular time if it is then made available, by reason of the employment and without any transfer of the property in it, to the employee.
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
(1)[F14The appropriate percentage for a year for a car with a CO2 emissions figure of less than 75 is determined in accordance with the following table.
Car | Appropriate percentage |
---|---|
Car with CO2 emissions figure of 0 | 2% |
Car with CO2 emissions figure of 1 - 50 | |
Car with electric range figure of 130 or more | 2% |
Car with electric range figure of 70 - 129 | 5% |
Car with electric range figure of 40 - 69 | 8% |
Car with electric range figure of 30 - 39 | 12% |
Car with electric range figure of less than 30 | 14% |
Car with CO2 emissions figure of 51 - 54 | 15% |
Car with CO2 emissions figure of 55 - 59 | 16% |
Car with CO2 emissions figure of 60 - 64 | 17% |
Car with CO2 emissions figure of 65 - 69 | 18% |
Car with CO2 emissions figure of 70 - 74 | 19% |
[F15(2)For the purposes of subsection (1) and the table—
(a)if a CO2 emissions figure is not a whole number, round it down to the nearest whole number, and
(b)if an electric range figure is not a whole number, round it up to the nearest whole number.]
(3)The appropriate percentage for a year for a car with a CO2 emissions figure of 75 or more is whichever is the lesser of—
(a)20% plus one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds 75, and
(b)37%.
(4)For the purposes of subsection (3), if a CO2 emissions figure is not a multiple of 5, round it down to the nearest multiple of 5.
(5)In this section, an “electric range figure” is the number of miles which is the equivalent of the number of kilometres specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate on the basis of which a car is registered, as being the maximum distance for which the car can be driven in electric mode without recharging the battery.]
[F16(5A)For the purpose of determining the electric range figure for a car first registered before 6 April 2020, ignore any WLTP (worldwide harmonised light vehicle test procedures) values specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate.
(5B)For the purpose of determining the electric range figure for a car first registered on or after 6 April 2020, ignore any values specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.]
(7)This section is subject to—
F17(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).]
Textual Amendments
F13S. 139 substituted (with effect in accordance with s. 59(5) of the amending Act) by Finance Act 2010 (c. 13), s. 59(2)
F14S. 139(1)-(5) substituted for s. 139(1)-(6) (with effect in accordance with s. 2(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 2(2)
F15S. 139(2) substituted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(4)(a)(5)
F16S. 139(5A)(5B) inserted (6.4.2020 with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 8(4)(b)(5)
F17S. 139(7)(a) and word omitted (with effect in accordance with s. 24(17) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 24(6) and word in s. 139(7)(a) inserted (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(5)
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
(1)The appropriate percentage for a year for a car without a CO2 emissions figure is determined under this section.
(2)If the car has an internal combustion engine with one or more reciprocating pistons, the appropriate percentage for the year is—
For this purpose a car’s cylinder capacity is the capacity of its engine as calculated for the purposes of VERA 1994.
(3)If subsection (2) does not apply, the appropriate percentage for the year is—
[F21[F22(a)[F23[F249%]] [F25[F2313%]] [F26[F2516%]] [F262%] if the car cannot in any circumstances emit CO2 by being driven, and]
(b)[F2737%] in any other case.]
F28(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F29(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)This section is subject to—
F30(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).
Textual Amendments
F18Word in s. 140(2) Table substituted (with effect in accordance with s. 2(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 2(3)(a)(i)
F19Word in s. 140(2) Table substituted (with effect in accordance with s. 2(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 2(3)(a)(ii)
F20Word in s. 140(2) Table substituted (with effect in accordance with s. 23(12) of the amending Act) by Finance Act 2013 (c. 29), s. 23(8)
F21S. 140(3)(a)(b) substituted for words (with effect for the tax year 2010-11 and subsequent tax years in accordance with s. 58(18) of the amending Act) by Finance Act 2010 (c. 13), s. 58(8)
F22S. 140(3)(a) substituted (with effect in accordance with s. 23(12) of the amending Act) by Finance Act 2013 (c. 29), s. 23(9)(a)
F23Word in s. 140(3)(a) substituted (with effect in accordance with s. 9(4) of the amending Act) by Finance Act 2016 (c. 24), s. 9(3)
F24Word in s. 140(3)(a) substituted (with effect in accordance with s. 9(2) of the amending Act) by Finance Act 2016 (c. 24), s. 9(1)
F25Word in s. 140(3)(a) substituted (with effect in accordance with s. 8(9) of the amending Act) by Finance Act 2016 (c. 24), s. 8(7)
F26Word in s. 140(3)(a) substituted (with effect in accordance with s. 2(6) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 2(3)(b)
F27Word in s. 140(3)(b) substituted (with effect in accordance with s. 23(12) of the amending Act) by Finance Act 2013 (c. 29), s. 23(10)
F28S. 140(3A) omitted (with effect in accordance with s. 23(12) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 23(10)
F29S. 140(4) omitted (with effect for the tax year 2010-11 and subsequent tax years in accordance with s. 58(18) of the amending Act) by virtue of Finance Act 2010 (c. 13), s. 58(10)
F30S. 140(5)(a) and word omitted (with effect in accordance with s. 24(17) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 24(10) and word in s. 140(5)(a) inserted (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(5)
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F31S. 141 omitted (with effect in accordance with s. 24(17) of the amending Act) by virtue of Finance Act 2014 (c. 26), s. 24(11); word in s. 141(2) substituted (with effect in accordance with s. 9(2) of the amending Act) by Finance Act 2015 (c. 11), s. 9(1); s. 141(1)(1A) substituted for s. 141(1) (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(2); s. 141(2A) inserted (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(4); word in s. 141(2) substituted (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(3)(a); words in s. 141(2) substituted (with effect in accordance with s. 9(6) of the amending Act) by Finance Act 2018 (c. 3), s. 9(3)(b)
Modifications etc. (not altering text)
C1Ss. 133-142 applied by S.I. 2001/1123, reg. 2 (as amended (6.4.2008) by The Income Tax (Car Benefits) (Reduction of Value of Appropriate Percentage) (Amendment) Regulations 2007 (S.I. 2007/3068), regs. 1, 3)
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