Income Tax (Earnings and Pensions) Act 2003

139 Car 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 whether the car’s CO₂ emissions figure exceeds the lower threshold for that year.

(2) If the car’s 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%.

(4) The lower threshold is—

Table

Tax year	Lower threshold (in g/km)
2003-04	155
2004-05 and subsequent tax years	145

(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.

(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).