Finance Act 2022

PART 2 Amendments of ITEPA 2003

2 Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended as follows.

3 In section 134(1) (meaning of car with a CO₂ emissions figure)—

(a) in paragraph (b)—

(i) after “October 1999” insert “but before IP completion day”;

(ii) after “section 136” insert “(registration from 1st October 1999 to IP completion day)”;

(b) at the end of paragraph (b) omit “or” and insert—

“(ba) a car first registered on or after IP completion day to which section 136A (registration on or after IP completion day) applies,”;

(c) in paragraph (c)—

(i) after “January 2000” insert “but before IP completion day”;

(ii) after “(bi-fuel cars” insert “: registration from 1st January 2000 to IP completion day”;

(d) at the end of paragraph (c) insert “, or

(d) a car first registered on or after IP completion day to which section 137A (bi-fuel cars: registration on or after IP completion day) applies.”

4 (1) In section 136 (car with a CO₂ emissions figure: post-September 1999 registration)—

(a) in the heading, for “post-September 1999 registration” substitute “registration from 1st October 1999 to IP completion day”;

(b) in subsection (1) after “October 1999” insert “but before IP completion day”;

(c) in subsection (3) after “(bi-fuel cars” insert “: registration from 1st January 2000 to IP completion day”.

(2) After section 136 insert—

“136A Car with a CO₂ emissions figure: registration on or after IP completion day

(1) This section applies to a car first registered on or after IP completion day if it is so registered on the basis of a qualifying emissions certificate.

(2) The car’s CO₂ emissions figure is the figure specified in the qualifying emissions certificate unless more than one figure is specified, in which case the car’s CO₂ emissions figure is the figure specified as the CO₂ emissions (combined) figure.

(3) For the purpose of determining the car’s CO₂ emissions figure ignore any values specified in the qualifying emissions certificate that are not WLTP (worldwide harmonised light vehicles test procedures) values.

(4) Subsection (2) is subject to—

(a) section 137A (bi-fuel cars registered after IP completion day), and

(b) section 138 (automatic car for a disabled employee).”

5 (1) In section 137 (car with a CO₂ emissions figure: bi-fuel cars)—

(a) in the heading, at the end insert “: registration from 1st January 2000 to IP completion day”;

(b) in subsection (1) after “January 2000” insert “but before IP completion day”.

(2) After section 137 insert—

“137A Car with a CO₂ emissions figure: bi-fuel cars registered on or after IP completion day

(1) This section applies to a car first registered on or after IP completion day if it is so registered on the basis of a qualifying emissions certificate which specifies separate CO₂ emissions figures in terms of grams per kilometre driven for different fuels.

(2) The car’s CO₂ emissions figure is—

(a) the lowest figure specified, or

(b) if there is more than one figure specified in relation to each fuel, the lowest CO₂ emissions (combined) figure specified.

(3) For the purpose of determining the car’s CO₂ emissions figure ignore any values specified in the qualifying emissions certificate that are not WLTP (worldwide harmonised light vehicles test procedures) values.

(4) Subsection (2) is subject to section 138 (automatic car for a disabled employee).”

6 (1) Section 171(1) (minor definitions: general) is amended as follows.

(2) After the definition of “EC type-approval certificate” insert—

• ““qualifying emissions certificate” has the same meaning as in CAA 2001 (see section 268C(1) of that Act);”.

(3) For the definition of “UK approval certificate” substitute—

• ““UK approval certificate” means—

  (a)

  a certificate issued under—

  (i)

  section 58(1) or (4) of the Road Traffic Act 1988, or

  (ii)

  Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1)), or

  (b)

  any other certificate or document issued in the United Kingdom on the basis of which a vehicle is first registered, other than an EC certificate of conformity or an EC type-approval certificate.”

(4) Sub-paragraph (3) has effect in relation to the tax year 2017-18 and subsequent tax years.

7 In the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682), in Schedule A1 (real time returns), in paragraph 22B(2) (benefits in kind: cars), in sub-paragraph (a)(ii) (car with a CO₂ emission figure)—

(a) after “136,” insert “136A,”;

(b) after “137,” insert “137A”.