Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 3 U.K. Employment income: earnings and benefits etc. treated as earnings

Chapter 6 U.K. Taxable benefits: cars, vans and related benefits

Cars: appropriate percentage: first registered on or after 1st January 1998 U.K.

[F1 139 Cars with a CO₂ emissions figure: the appropriate percentage U.K.

(1) The appropriate percentage for a year for a car with a CO₂ emissions figure depends on the car's CO₂ emissions figure.

[F2 (2) If the car's CO₂ emissions figure is less than the relevant threshold F3 ..., the appropriate percentage for the year is—

[F4 (a) if the car's CO₂ emissions figure does not exceed 50 grams per kilometre driven, [F5 16%],

(aa) if the car's CO₂ emissions figure exceeds 50 grams per kilometre driven but does not exceed 75 grams per kilometre driven, [F6 19%], and]

(b) otherwise, [F7 22%].

(3) If the car's CO₂ emissions figure is equal to the relevant threshold F8 ..., the appropriate percentage for the year is [F9 23%] (“the threshold percentage”).]

(4) If the car's CO₂ emissions figure exceeds the relevant threshold F10 ..., the appropriate percentage for the year is whichever is the lesser of—

(a) the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO₂ emissions figure exceeds the relevant threshold F10 ..., and

(b) [F11 37%.]

(5) The relevant threshold is [F12 95 grams] per kilometre driven.

(6) 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 subsections (3) and (4)(a).

(7) This section is subject to—

F13 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).]

Textual Amendments

F1 S. 139 substituted (with effect in accordance with s. 59(5) of the amending Act) by Finance Act 2010 (c. 13), s. 59(2)

F2 S. 139(2)(3) substituted (with effect in accordance with s. 17(2) of the amending Act) by Finance Act 2012 (c. 14), s. 17(1)

F3 Words in s. 139(2) omitted (with effect in accordance with s. 23(12) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 23(2)

F4 S. 139(2)(a)(aa) substituted for s. 139(2)(a) (with effect in accordance with s. 23(12) of the amending Act) by Finance Act 2013 (c. 29), s. 23(3)

F5 Word in s. 139(2)(a) substituted (with effect in accordance with s. 8(9) of the amending Act) by Finance Act 2016 (c. 24), s. 8(3)(a)

F6 Word in s. 139(2)(aa) substituted (with effect in accordance with s. 8(9) of the amending Act) by Finance Act 2016 (c. 24), s. 8(3)(b)

F7 Word in s. 139(2)(b) substituted (with effect in accordance with s. 8(9) of the amending Act) by Finance Act 2016 (c. 24), s. 8(3)(c)

F8 Words in s. 139(3) omitted (with effect in accordance with s. 23(12) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 23(5)(a)

F9 Word in s. 139(3) substituted (with effect in accordance with s. 8(9) of the amending Act) by Finance Act 2016 (c. 24), s. 8(4)

F10 Words in s. 139(4) omitted (with effect in accordance with s. 23(12) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 23(6)(a)

F11 Word in s. 139(4)(b) substituted (with effect in accordance with s. 23(12) of the amending Act) by Finance Act 2013 (c. 29), s. 23(6)(b)

F12 Words in s. 139(5) substituted (with effect in accordance with s. 51(2) of the amending Act) by Finance Act 2011 c. 11, s. 51(1)

F13 S. 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)

Modifications etc. (not altering text)

C1 Ss. 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)