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
C1139Car 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 F4whether—
a
the car is a qualifying low emissions car for that year, or
b
the car’s CO2 emissions figure exceeds the lower threshold for that year.
F11A
A car is a qualifying low emissions car for any year if—
a
it has a low CO2 emissions figure for that year, and
b
it is not an electrically propelled vehicle, within the meaning of section 140.
1B
If the car is a qualifying low emissions car for the year, the appropriate percentage is 10%.
F52
If—
a
the car is not a qualifying low emissions car for the year, but
b
its 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%.
F23A
A car has a low CO2 emissions figure for a year if its CO2 emissions figure does not exceed the limit for that year in the following Table—
Tax year | Limit (in g/km) |
|---|---|
2008-09 and subsequent tax years | 120 |
4
The lower threshold is—
Tax year | Lower threshold (in g/km) |
|---|---|
2009-10 | 135 |
2010-11 | 130 |
2011-12 and subsequent tax years | 125 |
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.
F35A
Subsection (5) does not apply for the purpose of determining whether a car has a low CO2 emissions figure for a year.
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).