PART 1Income tax, corporation tax and capital gains tax

Employment income and social security income

9Determining the appropriate percentage for a car: tax year 2020-21 only

(1)

For the tax year 2020-21, Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) has effect with the following modifications.

(2)

In section 139 (car with a CO2 emissions figure: the appropriate percentage)—

(a)

in the table in subsection (1), in the second column of the entry for a car with a CO2 emissions figure of 0, for “2%” substitute “0%”, and

(b)

in subsection (7) before paragraph (a) insert—

“(za)

section 139A (recently registered cars),”.

(3)

After section 139 insert—

“139ASection 139: recently registered car with CO2 emissions figure

In its application in relation to a car that is first registered on or after 6 April 2020, section 139 has effect as if—

(a)

for the table in subsection (1) there were substituted—

“Car

Appropriate percentage

Car with CO2 emissions figure of 0

0%

Car with CO2 emissions figure of 1 - 50

  • Car with electric range figure of 130 or more

0%

  • Car with electric range figure of 70 - 129

3%

  • Car with electric range figure of 40 - 69

6%

  • Car with electric range figure of 30 - 39

10%

  • Car with electric range figure of less than 30

12%

Car with CO2 emissions figure of 51 - 54

13%

Car with CO2 emissions figure of 55 - 59

14%

Car with CO2 emissions figure of 60 - 64

15%

Car with CO2 emissions figure of 65 - 69

16%

Car with CO2 emissions figure of 70 - 74

17%”

(b)

in subsection (3)(a) for “20%” there were substituted “18%”.”

(4)

In section 140 (car without a CO2 emissions figure: the appropriate percentage) in subsection (3)(a) for “2%” substitute “0%”.