PART 1Income tax, corporation tax and capital gains tax

CHAPTER 2Income tax: general

Other provisions

24Cars: the appropriate percentage

(1)

Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.

F1(2)

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(3)

Section 139 (cars with a CO2 figure: the appropriate percentage) is amended in accordance with subsections (4) to (6).

(4)

In subsection (2) —

(a)

in paragraph (a) for “5%” substitute “ 7% ”,

(b)

in paragraph (aa) for “9%” substitute “ 11% ”, and

(c)

in paragraph (b) for “13%” substitute “ 15% ”.

(5)

In subsection (3), for “14%” substitute “ 16% ”.

F2(6)

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(7)

Section 140 (cars without a CO2 figure: the appropriate percentage) is amended in accordance with subsections (8) to (10).

(8)

In subsection (2), in the Table —

(a)

for “15%” substitute “ 16% ”, and

(b)

for “25%” substitute “ 27% ”.

(9)

In subsection (3)(a), for “5%” substitute “ 7% ”.

F3(10)

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F4(11)

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(12)

Section 142 (car first registered before 1st January 1998: the appropriate percentage) is amended in accordance with subsections (13) and (14).

(13)

In subsection (2), in the Table —

(a)

for “15%” substitute “ 16% ”,

(b)

for “22%” substitute “ 27% ”, and

(c)

for “32%” substitute “ 37% ”.

(14)

In subsection (3), for “32%” substitute “ 37% ”.

F5(15)

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(16)

In consequence, section 23(4) and (5)(b) of FA 2013 is omitted.

(17)

The amendments made by this section have effect for the tax year 2016-17 and subsequent tax years.