PART 1

Direct taxes

Income tax: employment and pensions

Taxable benefits: ultra-low emission vehicles
2
1
ITEPA 2003 is amended as follows.
2
In section 139 (car with a CO2 emissions figure: the appropriate percentage), for subsections (1) to (6) substitute—
1
The appropriate percentage for a year for a car with a CO2 emissions figure of less than 75 is determined in accordance with the following table.
Car | Appropriate percentage
Car with CO2 emissions figure of 0 | 2%
Car with CO2 emissions figure of 1 - 50 |
- Car with electric range figure of 130 or more | 2%
- Car with electric range figure of 70 - 129 | 5%
- Car with electric range figure of 40 - 69 | 8%
- Car with electric range figure of 30 - 39 | 12%
- Car with electric range figure of less than 30 | 14%
Car with CO2 emissions figure of 51 - 54 | 15%
Car with CO2 emissions figure of 55 - 59 | 16%
Car with CO2 emissions figure of 60 - 64 | 17%
Car with CO2 emissions figure of 65 - 69 | 18%
Car with CO2 emissions figure of 70 - 74 | 19%
2
For the purposes of subsection (1) and the table, if a CO2 emissions figure or an electric range figure is not a whole number, round it down to the nearest whole number.
3
The appropriate percentage for a year for a car with a CO2 emissions figure of 75 or more is whichever is the lesser of—
a
20% plus one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds 75, and
b
37%.
4
For the purposes of subsection (3), if a CO2 emissions figure is not a multiple of 5, round it down to the nearest multiple of 5.
5
In this section, an “electric range figure” is the number of miles which is the equivalent of the number of kilometres specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate on the basis of which a car is registered, as being the maximum distance for which the car can be driven in electric mode without recharging the battery.
3
In section 140 (car without a CO2 emissions figure: the appropriate percentage)—
a
in subsection (2), in the table —
i
for “23%” substitute “24%”, and
ii
for “34%” substitute “35%”;
b
in subsection (3)(a), for “16%” substitute “2%”.
4
In section 142(2) (car first registered before 1 January 1998: the appropriate percentage), in the table—
a
for “23%” substitute “24%”, and
b
for “34%” substitute “35%”.
5
Omit subsection 170(3).
6
The amendments made by this section have effect for the tax year 2020-21 and subsequent tax years.