Details of the Section
2.Subsection (1) introduces changes to Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 (taxable benefits: cars, vans and related benefits) which increase the appropriate percentage for cars for the tax year 2018-19.
3.Subsection (2) introduces the changes to section 139 ITEPA 2003.
4.Subsection (3) increases the appropriate percentage for cars. Subsection (4) increases the appropriate percentage of the relevant threshold (95 grammes per kilometre) from 18% to 20%. (The relevant threshold is the approved CO2 emissions figure upon which all calculations and bandings of the appropriate percentage are based). The increases are outlined in the following table.
| CO2 emissions figure (grammes per kilometre) | Increase in appropriate percentage: | |
|---|---|---|
| from | to | |
| 0 - 50 | 9% | 13% |
| 51 - 75 | 13% | 16% |
| 76 - 94 | 17% | 19% |
| 95 (relevant threshold) | 18% | 20% |
5.Subsection (5) introduces a change to section 140 ITEPA 2003 and increases the appropriate percentage for cars without a CO2 emissions figure. The percentage for engines with a cylinder capacity of 1400 cc or less increases from 18% to 20%; and for those with a cylinder capacity of 1401cc to 2000cc increases from 29% to 31%.
6.Subsection (6) introduces a change to section 142 ITEPA 2003 and increases the appropriate percentage for cars first registered before 1 January 1998 with an internal combustion engine with a cylinder capacity of 1400 cc or less from 18% to 20%. The increase in the appropriate percentage for cars first registered before 1 January 1998 with an internal combustion engine with a cylinder capacity of 1401 cc to 2000 cc increases from 29% to 31%.
7.Subsection (7) provides that these changes have effect for the tax year 2018-19 and subsequent tax years.
