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

C1141Diesel cars: the appropriate percentage

1

This section applies to a diesel car first registered on or after 1st January 1998.

2

To determine the appropriate percentage for such a car for a year—

Step 1

Determine whether the car is a car with a CO2 emissions figure or a car without a CO2 emissions figure (see section 134).

Step 2

Take what would be the appropriate percentage for the car for the year under section 139 or 140 as appropriate.

Step 3

The appropriate percentage for the car for the year is whichever is the smaller of—

a

the figure resulting from the addition of 3 percentage points to the figure found under step 2, and

b

35%.

3

In this section “diesel car” means a car which is propelled solely by diesel.

4

This section is subject to any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).