Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 6Taxable benefits: cars, vans and related benefits
Cars: appropriate percentage: first registered on or after 1st January 1998
139Car with a CO2 emissions figure: the appropriate percentage
1
The appropriate percentage for a year for a car with a CO2 emissions figure depends upon whether the car’s CO2 emissions figure exceeds the lower threshold for that year.
2
If the car’s CO2 emissions figure does not exceed the lower threshold for the year, the appropriate percentage for the year is 15% (“the basic percentage”).
3
If the car’s CO2 emissions figure does exceed the lower threshold for the year, the appropriate percentage for the year is whichever is the lesser of—
a
the basic percentage increased by one percentage point for each 5 grams per kilometre by which the CO2 emissions figure exceeds the lower threshold for the year, and
b
35%.
4
The lower threshold is—
Tax year | Lower threshold (in g/km) |
|---|---|
2003-04 | 155 |
2004-05 and subsequent tax years | 145 |
5
If the car’s CO2 emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of this section.
6
This section is subject to—
a
section 141 (diesel cars), and
b
any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).