Income Tax (Earnings and Pensions) Act 2003

139 Car with a CO₂ emissions figure: the appropriate percentage U.K.

(1) The appropriate percentage for a year for a car with a CO₂ emissions figure depends upon [F1 whether—

(a) the car is a qualifying low emissions car for that year, or

(b) the car’s CO₂ emissions figure exceeds the lower threshold for that year.]

[F2 (1A) A car is a qualifying low emissions car for any year if—

(a) it has a low CO₂ emissions figure for that year, and

(b) it is not an electrically propelled vehicle, within the meaning of section 140.

(1B) If the car is a qualifying low emissions car for the year, the appropriate percentage is 10%.]

[F3 (2) If—

(a) the car is not a qualifying low emissions car for the year, but

(b) its 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%.

[F4 (3A) A car has a low CO₂ emissions figure for a year if its CO₂ emissions figure does not exceed the limit for that year in the following Table—

Table

Tax year	Limit (in g/km)
2008-09 and subsequent tax years	120]

(4) The lower threshold is—

Table

Tax year	Lower threshold (in g/km)
2003-04	155
2004-05 F5 ...	145
[F6 2005-06 [F7 , 2006-07 or 2007-08]	140]
[F8 2008-09 and subsequent tax years	135]

(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.

[F9 (5A) Subsection (5) does not apply for the purpose of determining whether a car has a low CO₂ emissions figure for a year.]

(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).

Textual Amendments

F1 Words in s. 139(1) substituted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(2)

F2 S. 139(1A)(1B) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(3)

F3 S. 139(2) substituted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(4)

F4 S. 139(3A) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(5)

F5 Words in s. 139(4) repealed (10.7.2003) by Finance Act 2003 (c. 14), s. 138(2), Sch. 43 Pt. 3(2)

F6 Words in s. 139(4) inserted (10.7.2003) by Finance Act 2003 (c. 14), s. 138(3)

F7 Words in s. 139(4) substituted (19.7.2006) by Finance Act 2006 (c. 25), s. 59(6)(a)

F8 Words in s. 139(4) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 59(6)(b)

F9 S. 139(5A) inserted (with effect for the tax year 2008-09 and subsequent tax years in accordance with s. 59(10) of the amending Act) by Finance Act 2006 (c. 25), s. 59(7)