Part 3

Other provisions

Income tax: benefits in kind

Cars with CO2 emissions figure
59
1
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits) is further amended as follows.
2
For section 139 substitute—

Cars with a CO2 emissions figure: the appropriate percentage
139
1
The appropriate percentage for a year for a car with a CO2 emissions figure depends on the car's CO2 emissions figure.
2
If the car's CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage for the year is—
a
if the year is 2012-13, 2013-14 or 2014-15 and the car's CO2 emissions figure for the year does not exceed 75 grams per kilometre driven, 5%, and
b
otherwise, 10%.
3
If the car's CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage for the year is 11% (“the threshold percentage”).
4
If the car's CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage for the year is whichever is the lesser of—
a
the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds the relevant threshold for the year, and
b
35%.
5
The relevant threshold is 100 grams per kilometre driven.
6
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 subsections (3) and (4)(a).
7
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).
3
In section 170 (Treasury orders and regulations varying various amounts)—
a
omit subsection (2A) (power to vary limit in section 139(3A)), and
b
in subsection (3)—
i
for “ “lower” substitute “ “ relevant ”,
ii
for “the Table in section 139(4)” substitute “ section 139(5) ”, and
iii
for “2006” substitute “ 2013 ”.
4
In consequence of the amendments made by subsections (2) and (3), omit—
a
in FA 2006, section 59,
b
in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and
c
in this Act, section 58(2) to (5).
5
The amendments made by this section have effect for the tax year 2012-13 and subsequent tax years.