http://www.legislation.gov.uk/id/ukpga/2025/8

Part 1Income tax, capital gains tax and corporate taxes

Income tax provisions relating to cars

5Appropriate percentage for cars: tax year 2028-29

(1)

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

(2)

In section 139 (cars with a CO₂ emissions figure: the appropriate percentage), in subsection (1), for the table (as substituted by section 11(7) of FA 2023) substitute—

“Car
Appropriate percentage
Car with CO₂ emissions figure of 0
7%
Car with CO₂ emissions figure of 1–50
18%
Car with CO₂ emissions figure of 51–54
19%
Car with CO₂ emissions figure of 55–59
20%
Car with CO₂ emissions figure of 60–64
21%
Car with CO₂ emissions figure of 65–74
22%” .

“Car	Appropriate percentage
Car with CO₂ emissions figure of 0	7%
Car with CO₂ emissions figure of 1–50	18%
Car with CO₂ emissions figure of 51–54	19%
Car with CO₂ emissions figure of 55–59	20%
Car with CO₂ emissions figure of 60–64	21%
Car with CO₂ emissions figure of 65–74	22%” .

(3)

In subsection (3) of section 139 (as amended by section 11(3) of FA 2023)—

(a)

in paragraph (a), for “21%” substitute “22%”, and

(b)

in paragraph (b), for “37%” substitute “38%”.

(4)

In section 140 (cars without a CO₂ emissions figure: the appropriate percentage), in subsection (2), for the table substitute—

“Cylinder capacity of car in cubic centimetres
Appropriate percentage
1,400 or less
25%
More than 1,4000 but not more than 2,000
36%
More than 2,000
38%” .

“Cylinder capacity of car in cubic centimetres	Appropriate percentage
1,400 or less	25%
More than 1,4000 but not more than 2,000	36%
More than 2,000	38%” .

(5)

In subsection (3) of section 140—

(a)

in paragraph (a), for “2%” substitute “7%”, and

(b)

in paragraph (b), for “37%” substitute “38%”.

(6)

In section 141 (diesel cars: the appropriate percentage), in subsection (2), in Step 3, for “37%” substitute “38%”.

(7)

In section 142 (cars first registered before 1 January 1998: the appropriate percentage), in subsection (2), for the table substitute—

“Cylinder capacity of car in cubic centimetres
Appropriate percentage
1,400 or less
25%
More than 1,4000 but not more than 2,000
36%
More than 2,000
38%” .

“Cylinder capacity of car in cubic centimetres	Appropriate percentage
1,400 or less	25%
More than 1,4000 but not more than 2,000	36%
More than 2,000	38%” .

(8)

In subsection (3) of section 142, for “37%” substitute “38%”.

(9)

The amendments made by subsections (2) to (8) have effect for the tax year 2028-29.

(10)

In consequence of the amendments made by this section, in section 139, omit—

(a)

in subsection (2), paragraph (b) together with the “and” before it, and

(b)

subsections (5) to (5B).

(11)

The amendments made by subsection (10) have effect for the for the tax year 2028-29 and subsequent tax years.